has Sharpe Ratio of 0.0494 which conveys that the entity had 0.0494% of return per unit of volatility over the last 3 months. Our approach towards estimating volatility of an index is to use all available market data together with index specific technical indicators
that cannot be diversified away. We have found twenty-eight technical indicators
for NIKKEI 225 which you can use to evaluate future volatility of the organization. The index secures Beta (Market Risk) of 0.0 which conveys that the returns on MARKET and NIKKEI 225 are completely uncorrelated. Although it is extremely important to respect NIKKEI 225 price patterns
, it is better to be realistic regarding the information on equity historical price patterns
. The approach towards estimating future performance of any index is to evaluate the business as a whole together with its past performance including all available fundamental and technical indicators
. By inspecting NIKKEI 225 technical indicators
you can now evaluate if the expected return of 0.0439% will be sustainable into the future.
Insignificant reverse predictability
NIKKEI 225 has insignificant reverse predictability. Overlapping area represents the amount of predictability between NIKKEI 225 time series from June 20, 2019 to August 4, 2019 and August 4, 2019 to September 18, 2019. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of NIKKEI 225 price movement. The serial correlation of -0.16 indicates that over 16.0% of current NIKKEI 225 price fluctuation can be explain by its past prices. Given that NIKKEI 225 has negative autocorrelation for selected time horizon, investors may consider taking a contrarian position regarding future price movement of NIKKEI 225 for similar time interval.