This module allows you to analyze existing cross correlation between Foot Locker and NIKKEI 225. You can compare the effects of market volatilities on Foot Locker 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 Foot Locker with a short position of NIKKEI 225. See also your portfolio center. Please also check ongoing floating volatility patterns of Foot Locker and NIKKEI 225.
|Horizon||30 Days Login to change|
Predicted Return Density
Foot Locker Inc vs. NIKKEI 225
Allowing for the 30-days total investment horizon, Foot Locker is expected to under-perform the NIKKEI 225. In addition to that, Foot Locker is 2.47 times more volatile than NIKKEI 225. It trades about -0.11 of its total potential returns per unit of risk. NIKKEI 225 is currently generating about -0.03 per unit of volatility. If you would invest 2,108,659 in NIKKEI 225 on July 25, 2019 and sell it today you would lose (37,568) from holding NIKKEI 225 or give up 1.78% of portfolio value over 30 days.
Pair Corralation between Foot Locker and NIKKEI 225
|Time Period||2 Months [change]|
Diversification Opportunities for Foot Locker and NIKKEI 225
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding Foot Locker Inc and NIKKEI 225 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NIKKEI 225 and Foot Locker 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 Foot Locker 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 Foot Locker i.e. Foot Locker and NIKKEI 225 go up and down completely randomly.
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