Correlation Analysis Between NIKKEI 225 and All Ords

This module allows you to analyze existing cross correlation between NIKKEI 225 and All Ords. You can compare the effects of market volatilities on NIKKEI 225 and All Ords 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 NIKKEI 225 with a short position of All Ords. See also your portfolio center. Please also check ongoing floating volatility patterns of NIKKEI 225 and All Ords.
Horizon     30 Days    Login   to change
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Comparative Performance

 Predicted Return Density 
      Returns 

NIKKEI 225  vs.  All Ords

 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, NIKKEI 225 is expected to generate 1.02 times less return on investment than All Ords. In addition to that, NIKKEI 225 is 2.09 times more volatile than All Ords. It trades about 0.24 of its total potential returns per unit of risk. All Ords is currently generating about 0.51 per unit of volatility. If you would invest  563,270  in All Ords on January 20, 2019 and sell it today you would earn a total of  55,150  from holding All Ords or generate 9.79% return on investment over 30 days.

Pair Corralation between NIKKEI 225 and All Ords

0.05
Time Period2 Months [change]
DirectionPositive 
StrengthInsignificant
Accuracy92.86%
ValuesDaily Returns

Diversification Opportunities for NIKKEI 225 and All Ords

NIKKEI 225 diversification synergy

Significant diversification

Overlapping area represents the amount of risk that can be diversified away by holding NIKKEI 225 and All Ords in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on All Ords and NIKKEI 225 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 NIKKEI 225 are associated (or correlated) with All Ords. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of All Ords has no effect on the direction of NIKKEI 225 i.e. NIKKEI 225 and All Ords go up and down completely randomly.
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See also your portfolio center. Please also try Volatility Analysis module to get historical volatility and risk analysis based on latest market data.


 
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