Correlation Analysis Between NIKKEI 225 and Seoul Comp

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

 Predicted Return Density 

NIKKEI 225  vs.  Seoul Comp

 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, NIKKEI 225 is expected to generate 0.95 times more return on investment than Seoul Comp. However, NIKKEI 225 is 1.06 times less risky than Seoul Comp. It trades about -0.19 of its potential returns per unit of risk. Seoul Comp is currently generating about -0.21 per unit of risk. If you would invest  2,227,797  in NIKKEI 225 on May 17, 2019 and sell it today you would lose (116,108)  from holding NIKKEI 225 or give up 5.21% of portfolio value over 30 days.

Pair Corralation between NIKKEI 225 and Seoul Comp

Time Period2 Months [change]
ValuesDaily Returns

Diversification Opportunities for NIKKEI 225 and Seoul Comp

NIKKEI 225 diversification synergy

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding NIKKEI 225 and Seoul Comp in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Seoul Comp 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 Seoul Comp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seoul Comp has no effect on the direction of NIKKEI 225 i.e. NIKKEI 225 and Seoul Comp go up and down completely randomly.
See also your portfolio center. Please also try Money Managers module to screen money managers from public funds and etfs managed around the world.