Pair Correlation Between XU100 and DAX

This module allows you to analyze existing cross correlation between XU100 and DAX. You can compare the effects of market volatilities on XU100 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 XU100 with a short position of DAX. See also your portfolio center. Please also check ongoing floating volatility patterns of XU100 and DAX.
 Time Horizon     30 Days    Login   to change
Symbolsvs

XU100  vs.  DAX

 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, XU100 is expected to under-perform the DAX. But the index apears to be less risky and, when comparing its historical volatility, XU100 is 1.07 times less risky than DAX. The index trades about -0.15 of its potential returns per unit of risk. The DAX is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  1,248,379  in DAX on March 25, 2018 and sell it today you would earn a total of  8,860  from holding DAX or generate 0.71% return on investment over 30 days.

Pair Corralation between XU100 and DAX

0.87
Time Period2 Months [change]
DirectionPositive 
StrengthStrong
Accuracy91.84%
ValuesDaily Returns

Diversification

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding XU100 and DAX in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on DAX and XU100 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 XU100 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 XU100 i.e. XU100 and DAX go up and down completely randomly.
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Comparative Volatility

 Predicted Return Density 
      Returns 

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See also your portfolio center. Please also try Balance Of Power module to check stock momentum by analyzing balance of power indicator and other technical ratios.