This module allows you to analyze existing cross correlation between Twitter and NIKKEI 225. You can compare the effects of market volatilities on Twitter 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 Twitter with a short position of NIKKEI 225. See also your portfolio center. Please also check ongoing floating volatility patterns of Twitter and NIKKEI 225.
|Horizon||30 Days Login to change|
Predicted Return Density
Twitter Inc vs. NIKKEI 225
Given the investment horizon of 30 days, Twitter is expected to generate 2.52 times more return on investment than NIKKEI 225. However, Twitter is 2.52 times more volatile than NIKKEI 225. It trades about 0.13 of its potential returns per unit of risk. NIKKEI 225 is currently generating about 0.06 per unit of risk. If you would invest 3,629 in Twitter on August 18, 2019 and sell it today you would earn a total of 695.00 from holding Twitter or generate 19.15% return on investment over 30 days.
Pair Corralation between Twitter and NIKKEI 225
|Time Period||3 Months [change]|
Diversification Opportunities for Twitter and NIKKEI 225
Very good diversification
Overlapping area represents the amount of risk that can be diversified away by holding Twitter Inc and NIKKEI 225 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NIKKEI 225 and Twitter 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 Twitter 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 Twitter i.e. Twitter and NIKKEI 225 go up and down completely randomly.
See also your portfolio center. Please also try Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.