Correlation Analysis Between DAX and NQFI

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

 Predicted Return Density 
      Returns 

DAX  vs.  NQFI

 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, DAX is expected to under-perform the NQFI. But the index apears to be less risky and, when comparing its historical volatility, DAX is 1.07 times less risky than NQFI. The index trades about -0.15 of its potential returns per unit of risk. The NQFI is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest  150,893  in NQFI on November 16, 2018 and sell it today you would lose (9,227)  from holding NQFI or give up 6.11% of portfolio value over 30 days.

Pair Corralation between DAX and NQFI

0.82
Time Period2 Months [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for DAX and NQFI

DAX diversification synergy

Very poor diversification

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