This module allows you to analyze existing cross correlation between Nasdaq and DAX. You can compare the effects of market volatilities on Nasdaq 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 Nasdaq with a short position of DAX. See also your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq and DAX.
Assuming 30 trading days horizon, Nasdaq is expected to under-perform the DAX. In addition to that, Nasdaq is 1.58 times more volatile than DAX. It trades about -0.03 of its total potential returns per unit of risk. DAX is currently generating about 0.02 per unit of volatility. 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.
Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq and DAX in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on DAX and Nasdaq 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 Nasdaq 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 Nasdaq i.e. Nasdaq and DAX go up and down completely randomly.
Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked.