Pair Correlation Between Stockholm and DAX

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

Pair Volatility

Assuming 30 trading days horizon, Stockholm is expected to generate 0.63 times more return on investment than DAX. However, Stockholm is 1.59 times less risky than DAX. It trades about 0.41 of its potential returns per unit of risk. DAX is currently generating about 0.24 per unit of risk. If you would invest  57,330  in Stockholm on December 24, 2017 and sell it today you would earn a total of  1,896  from holding Stockholm or generate 3.31% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Stockholm and DAX


Time Period1 Month [change]
ValuesDaily Returns


Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Stockholm and DAX in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on DAX and Stockholm 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 Stockholm 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 Stockholm i.e. Stockholm and DAX go up and down completely randomly.

Comparative Volatility

 Predicted Return Density