Correlation Analysis Between NYSE and DAX

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
Compare Efficiency

Comparative Performance

 Predicted Return Density 

NYSE  vs.  DAX

 Performance (%) 

Pair Volatility

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 Period2 Months [change]
ValuesDaily Returns

Diversification Opportunities for NYSE and DAX

NYSE diversification synergy

Poor diversification

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.

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See also your portfolio center. Please also try Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.