Correlation Analysis Between Visa and NIKKEI 225

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

 Predicted Return Density 
      Returns 

Visa Inc  vs.  NIKKEI 225

 Performance (%) 
      Timeline 

Pair Volatility

Taking into account the 30 trading days horizon, Visa is expected to generate 1.01 times more return on investment than NIKKEI 225. However, Visa is 1.01 times more volatile than NIKKEI 225. It trades about 0.27 of its potential returns per unit of risk. NIKKEI 225 is currently generating about 0.13 per unit of risk. If you would invest  13,850  in Visa on February 17, 2019 and sell it today you would earn a total of  1,646  from holding Visa or generate 11.88% return on investment over 30 days.

Pair Corralation between Visa and NIKKEI 225

0.83
Time Period2 Months [change]
DirectionPositive 
StrengthStrong
Accuracy82.5%
ValuesDaily Returns

Diversification Opportunities for Visa and NIKKEI 225

Visa Inc diversification synergy

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Visa Inc and NIKKEI 225 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NIKKEI 225 and Visa 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 Visa 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 Visa i.e. Visa and NIKKEI 225 go up and down completely randomly.
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