Correlation Analysis Between Israel Index and DAX

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

 Predicted Return Density 
      Returns 

Israel Index  vs.  DAX

 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Israel Index is expected to generate 0.78 times more return on investment than DAX. However, Israel Index is 1.29 times less risky than DAX. It trades about 0.09 of its potential returns per unit of risk. DAX is currently generating about 0.04 per unit of risk. If you would invest  99,371  in Israel Index on September 16, 2019 and sell it today you would earn a total of  3,109  from holding Israel Index or generate 3.13% return on investment over 30 days.

Pair Corralation between Israel Index and DAX

-0.31
Time Period3 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy54.69%
ValuesDaily Returns

Diversification Opportunities for Israel Index and DAX

Israel Index diversification synergy

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Israel Index and DAX in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on DAX and Israel Index 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 Israel Index 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 Israel Index i.e. Israel Index and DAX go up and down completely randomly.
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See also your portfolio center. Please also try Bollinger Bands module to use bollinger bands indicator to analyze target price for a given investing horizon.


 
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