Pair Correlation Between DAX and IPC

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

Pair Volatility

Assuming 30 trading days horizon, DAX is expected to generate 1.01 times more return on investment than IPC. However, DAX is 1.01 times more volatile than IPC. It trades about 0.0 of its potential returns per unit of risk. IPC is currently generating about -0.25 per unit of risk. If you would invest  1,301,319  in DAX on October 24, 2017 and sell it today you would earn a total of  185  from holding DAX or generate 0.01% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between DAX and IPC
0.19

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthInsignificant
Accuracy95.45%
ValuesDaily Returns

Diversification

Average diversification

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

 Predicted Return Density 
      Returns