Pair Correlation Between DAX and ISEQ

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

Pair Volatility

Assuming 30 trading days horizon, DAX is expected to under-perform the ISEQ. In addition to that, DAX is 1.14 times more volatile than ISEQ. It trades about -0.3 of its total potential returns per unit of risk. ISEQ is currently generating about -0.22 per unit of volatility. If you would invest  715,750  in ISEQ on January 22, 2018 and sell it today you would lose (34,179)  from holding ISEQ or give up 4.78% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between DAX and ISEQ
0.97

Parameters

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

Diversification

Almost no diversification

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

 Predicted Return Density 
      Returns