Pair Correlation Between DAX and BSE

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

Pair Volatility

Assuming 30 trading days horizon, DAX is expected to under-perform the BSE. In addition to that, DAX is 1.41 times more volatile than BSE. It trades about -0.32 of its total potential returns per unit of risk. BSE is currently generating about -0.28 per unit of volatility. If you would invest  3,551,158  in BSE on January 19, 2018 and sell it today you would lose (150,082)  from holding BSE or give up 4.23% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between DAX and BSE
0.75

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy90.48%
ValuesDaily Returns

Diversification

Poor diversification

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

 Predicted Return Density 
      Returns