This module allows you to analyze existing cross correlation between DAX and NIKKEI 225. You can compare the effects of market volatilities on DAX and NIKKEI 225 and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in DAX with a short position of NIKKEI 225. See also your portfolio center. Please also check ongoing floating volatility patterns of DAX and NIKKEI 225.
|Horizon||30 Days Login to change|
Predicted Return Density
DAX vs. NIKKEI 225
Assuming 30 trading days horizon, DAX is expected to generate 1.16 times more return on investment than NIKKEI 225. However, DAX is 1.16 times more volatile than NIKKEI 225. It trades about -0.04 of its potential returns per unit of risk. NIKKEI 225 is currently generating about -0.16 per unit of risk. If you would invest 1,222,239 in DAX on May 18, 2019 and sell it today you would lose (19,859) from holding DAX or give up 1.62% of portfolio value over 30 days.
Pair Corralation between DAX and NIKKEI 225
|Time Period||2 Months [change]|
Diversification Opportunities for DAX and NIKKEI 225
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding DAX and NIKKEI 225 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NIKKEI 225 and DAX is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on DAX are associated (or correlated) with NIKKEI 225. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIKKEI 225 has no effect on the direction of DAX i.e. DAX and NIKKEI 225 go up and down completely randomly.
See also your portfolio center. Please also try Financial Widgets module to easily integrated macroaxis content with over 30 different plug-and-play financial widgets.