Pair Correlation Between DAX and All Ords

This module allows you to analyze existing cross correlation between DAX and All Ords. You can compare the effects of market volatilities on DAX and All Ords 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 DAX with a short position of All Ords. See also your portfolio center. Please also check ongoing floating volatility patterns of DAX and All Ords.
 Time Horizon     30 Days    Login   to change
Symbolsvs
 DAX  vs   All Ords
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, DAX is expected to under-perform the All Ords. In addition to that, DAX is 1.16 times more volatile than All Ords. It trades about -0.31 of its total potential returns per unit of risk. All Ords is currently generating about -0.08 per unit of volatility. If you would invest  616,880  in All Ords on January 24, 2018 and sell it today you would lose (10,490)  from holding All Ords or give up 1.7% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between DAX and All Ords
0.85

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding DAX and All Ords in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on All Ords and DAX 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 DAX are associated (or correlated) with All Ords. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of All Ords has no effect on the direction of DAX i.e. DAX and All Ords go up and down completely randomly.
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Comparative Volatility

 Predicted Return Density 
      Returns