Correlation Analysis Between Global X and NIKKEI 225

This module allows you to analyze existing cross correlation between Global X Internet of Things ETF and NIKKEI 225. You can compare the effects of market volatilities on Global X 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 Global X with a short position of NIKKEI 225. See also your portfolio center. Please also check ongoing floating volatility patterns of Global X and NIKKEI 225.
Horizon     30 Days    Login   to change
Compare Efficiency

Comparative Performance

 Predicted Return Density 

Global X Internet of Things ET  vs.  NIKKEI 225

 Performance (%) 

Pair Volatility

Given the investment horizon of 30 days, Global X is expected to generate 1.73 times less return on investment than NIKKEI 225. In addition to that, Global X is 1.19 times more volatile than NIKKEI 225. It trades about 0.06 of its total potential returns per unit of risk. NIKKEI 225 is currently generating about 0.13 per unit of volatility. If you would invest  2,155,651  in NIKKEI 225 on March 26, 2019 and sell it today you would earn a total of  75,107  from holding NIKKEI 225 or generate 3.48% return on investment over 30 days.

Pair Corralation between Global X and NIKKEI 225

Time Period2 Months [change]
ValuesDaily Returns

Diversification Opportunities for Global X and NIKKEI 225

Global X Internet of Things ET diversification synergy

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding Global X Internet of Things ET and NIKKEI 225 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NIKKEI 225 and Global X 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 Global X Internet of Things ETF 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 Global X i.e. Global X and NIKKEI 225 go up and down completely randomly.
See also your portfolio center. Please also try Coins and Tokens Correlation module to utilize digital token correlation table to build portfolio of cryptocurrencies across multiple exchanges.