Correlation Analysis Between Royal Gold and NIKKEI 225

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

 Predicted Return Density 

Royal Gold Inc  vs.  NIKKEI 225

 Performance (%) 

Pair Volatility

Given the investment horizon of 30 days, Royal Gold is expected to generate 1.11 times more return on investment than NIKKEI 225. However, Royal Gold is 1.11 times more volatile than NIKKEI 225. It trades about 0.35 of its potential returns per unit of risk. NIKKEI 225 is currently generating about -0.03 per unit of risk. If you would invest  10,126  in Royal Gold on July 25, 2019 and sell it today you would earn a total of  2,809  from holding Royal Gold or generate 27.74% return on investment over 30 days.

Pair Corralation between Royal Gold and NIKKEI 225

Time Period2 Months [change]
StrengthVery Weak
ValuesDaily Returns

Diversification Opportunities for Royal Gold and NIKKEI 225

Royal Gold Inc diversification synergy

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Royal Gold Inc and NIKKEI 225 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NIKKEI 225 and Royal Gold 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 Royal Gold 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 Royal Gold i.e. Royal Gold and NIKKEI 225 go up and down completely randomly.
See also your portfolio center. Please also try Fundamental Analysis module to view fundamental data based on most recent published financial statements.