The Nikkei 225 Risk Control Index is an index that controls the level of fluctuation i.e. volatility of the Nikkei 225 by making the volatility lower than the Nikkei 225’s volatility itself and keeping the level within the targeted level.The index is one of the indexes which consists of the "Nikkei Stock Average Strategy Index Series" and is calculated for market participants who want to stabilize the volatility of their investment than the volatility of the Nikkei 225.
The Nikkei 225 Risk Control Index is calculated on the Nikkei Stock Average (Nikkei 225). The Nikkei 225 is comprised of 225 stocks selected from domestic common stocks in the 1st section of the Tokyo Stock Exchange, which is used around the globe as the premier index of Japanese stocks.
Index value on a day is calculated by multiplying the index value on the previous day by the daily return based on the change rate of Nikkei 225 on the current day and the Risk Control Factor. The Risk Control factor is calculated based on the Nikkei Stock Average Volatility Index. For instance, if the Risk Control Factor is 0.5, the daily return of the Nikkei 225 Risk Control Index becomes half of the daily return of the Nikkei Stock Average.
The commencement date of the calculation was June 6, 2011. The index value on December 28, 2001 was 10,000 points, (base date). The index is currently calculated and published on the end-of-day basis.