Correlation Analysis Between NIKKEI 225 and OMX COPENHAGEN

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

Comparative Performance

 Predicted Return Density 
      Returns 

NIKKEI 225  vs.  OMX COPENHAGEN

 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, NIKKEI 225 is expected to under-perform the OMX COPENHAGEN. But the index apears to be less risky and, when comparing its historical volatility, NIKKEI 225 is 1.08 times less risky than OMX COPENHAGEN. The index trades about -0.19 of its potential returns per unit of risk. The OMX COPENHAGEN is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  142,834  in OMX COPENHAGEN on May 17, 2019 and sell it today you would earn a total of  656.00  from holding OMX COPENHAGEN or generate 0.46% return on investment over 30 days.

Pair Corralation between NIKKEI 225 and OMX COPENHAGEN

0.63
Time Period2 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy97.3%
ValuesDaily Returns

Diversification Opportunities for NIKKEI 225 and OMX COPENHAGEN

NIKKEI 225 diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding NIKKEI 225 and OMX COPENHAGEN in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on OMX COPENHAGEN 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 OMX COPENHAGEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OMX COPENHAGEN has no effect on the direction of NIKKEI 225 i.e. NIKKEI 225 and OMX COPENHAGEN go up and down completely randomly.
    Optimize
See also your portfolio center. Please also try Commodity Channel Index module to use commodity channel index to analyze current equity momentum.


 
Search macroaxis.com