Correlation Analysis Between Foot Locker and NIKKEI 225

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
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Comparative Performance

 Predicted Return Density 
      Returns 

Foot Locker Inc  vs.  NIKKEI 225

 Performance (%) 
      Timeline 

Pair Volatility

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

0.5
Time Period2 Months [change]
DirectionPositive 
StrengthWeak
Accuracy84.09%
ValuesDaily Returns

Diversification Opportunities for Foot Locker and NIKKEI 225

Foot Locker Inc diversification synergy

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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