Correlation Analysis Between MGT CAPITAL and NIKKEI 225

This module allows you to analyze existing cross correlation between MGT CAPITAL INVESTMENTS INC and NIKKEI 225. You can compare the effects of market volatilities on MGT CAPITAL 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 MGT CAPITAL with a short position of NIKKEI 225. See also your portfolio center. Please also check ongoing floating volatility patterns of MGT CAPITAL and NIKKEI 225.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

 Predicted Return Density 
      Returns 

MGT CAPITAL INVESTMENTS INC  vs.  NIKKEI 225

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, MGT CAPITAL INVESTMENTS INC is expected to under-perform the NIKKEI 225. In addition to that, MGT CAPITAL is 9.91 times more volatile than NIKKEI 225. It trades about -0.09 of its total potential returns per unit of risk. NIKKEI 225 is currently generating about 0.07 per unit of volatility. If you would invest  2,128,599  in NIKKEI 225 on August 21, 2019 and sell it today you would earn a total of  79,310  from holding NIKKEI 225 or generate 3.73% return on investment over 30 days.

Pair Corralation between MGT CAPITAL and NIKKEI 225

0.68
Time Period3 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy96.88%
ValuesDaily Returns

Diversification Opportunities for MGT CAPITAL and NIKKEI 225

MGT CAPITAL INVESTMENTS INC diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding MGT CAPITAL INVESTMENTS INC and NIKKEI 225 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NIKKEI 225 and MGT CAPITAL 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 MGT CAPITAL INVESTMENTS INC 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 MGT CAPITAL i.e. MGT CAPITAL and NIKKEI 225 go up and down completely randomly.
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See also your portfolio center. Please also try Balance Of Power module to check stock momentum by analyzing balance of power indicator and other technical ratios.


 
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