Pair Correlation Between IPC and DAX

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

Pair Volatility

Given the investment horizon of 30 days, IPC is expected to under-perform the DAX. In addition to that, IPC is 1.15 times more volatile than DAX. It trades about -0.26 of its total potential returns per unit of risk. DAX is currently generating about 0.0 per unit of volatility. If you would invest  1,299,128  in DAX on October 20, 2017 and sell it today you would earn a total of  245  from holding DAX or generate 0.02% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between IPC and DAX
-0.11

Parameters

Time Period1 Month [change]
DirectionNegative 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Good diversification

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

 Predicted Return Density 
      Returns