What is the correlation between the NKD and 6J

Hi,

I have been watching the NKD and 6J for a while. I mostly see them going in the opposite directions. What is the cause for this to happen. They are both closely related i believe. Any insight would be great

Also what is a good strategy for trading both of these futures.

Thanks

 

Yen goes up, Nikkei goes down... because Japan is an exporting nation. More expensive Yen means less exports which hurts underlying economie.

The swing in de NKD, which is USD-denominated will be less in this case compared to the actual Nikkei... so the correlation will actually be less I assume.

Both futures are completely different though. NKD is equity index and 6J is forex... the only strategy I can think of is if you make assumptions on which level in Yen equals which level in the Nikkei... which is more a gamble then an actual strategy

 

That said.. the Yen is pretty much driving the index for a while now....

 

Thanks for the information. I really appreciate the reply

 

-edit- Scrap this... since only the market-to-market profit/loss is in USD, not the actual value of the index...