This module allows you to analyze existing cross correlation between Dillards and NIKKEI 225. You can compare the effects of market volatilities on Dillards 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 Dillards with a short position of NIKKEI 225. See also your portfolio center. Please also check ongoing floating volatility patterns of Dillards and NIKKEI 225.
|Horizon||30 Days Login to change|
Predicted Return Density
Dillards Inc vs. NIKKEI 225
Considering 30-days investment horizon, Dillards is expected to generate 2.25 times more return on investment than NIKKEI 225. However, Dillards is 2.25 times more volatile than NIKKEI 225. It trades about 0.12 of its potential returns per unit of risk. NIKKEI 225 is currently generating about -0.07 per unit of risk. If you would invest 5,740 in Dillards on June 19, 2019 and sell it today you would earn a total of 660.00 from holding Dillards or generate 11.5% return on investment over 30 days.
Pair Corralation between Dillards and NIKKEI 225
|Time Period||2 Months [change]|
Diversification Opportunities for Dillards and NIKKEI 225
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding Dillards Inc and NIKKEI 225 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NIKKEI 225 and Dillards 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 Dillards 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 Dillards i.e. Dillards and NIKKEI 225 go up and down completely randomly.
See also your portfolio center. Please also try Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.