- Companies in United States
- Peer Analysis
This module allows you to analyze existing cross correlation between NYSE and DAX. You can compare the effects of market volatilities on NYSE 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 NYSE with a short position of DAX. See also your portfolio center. Please also check ongoing floating volatility patterns of NYSE and DAX.
|Horizon||30 Days Login to change|
Predicted Return Density
NYSE vs. DAX
Given the investment horizon of 30 days, NYSE is expected to under-perform the DAX. But the index apears to be less risky and, when comparing its historical volatility, NYSE is 1.0 times less risky than DAX. The index trades about -0.14 of its potential returns per unit of risk. The DAX is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 1,155,383 in DAX on November 18, 2018 and sell it today you would lose (74,950) from holding DAX or give up 6.49% of portfolio value over 30 days.
Pair Corralation between NYSE and DAX
|Time Period||2 Months [change]|
Diversification Opportunities for NYSE and DAX
Overlapping area represents the amount of risk that can be diversified away by holding NYSE and DAX in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on DAX and NYSE 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 NYSE 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 NYSE i.e. NYSE and DAX go up and down completely randomly.