Pair Correlation Between DAX and MerVal

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

Pair Volatility

Assuming 30 trading days horizon, DAX is expected to generate 0.46 times more return on investment than MerVal. However, DAX is 2.18 times less risky than MerVal. It trades about -0.27 of its potential returns per unit of risk. MerVal is currently generating about -0.15 per unit of risk. If you would invest  1,334,017  in DAX on January 26, 2018 and sell it today you would lose (85,638)  from holding DAX or give up 6.42% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between DAX and MerVal


Time Period1 Month [change]
ValuesDaily Returns


Very poor diversification

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

Comparative Volatility

 Predicted Return Density