Correlation Analysis Between Russell 2000 and DAX

This module allows you to analyze existing cross correlation between Russell 2000 and DAX. You can compare the effects of market volatilities on Russell 2000 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 Russell 2000 with a short position of DAX. See also your portfolio center. Please also check ongoing floating volatility patterns of Russell 2000 and DAX.
Horizon     30 Days    Login   to change
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Comparative Performance

Russell 2000   vs.  DAX

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Russell 2000 is expected to under-perform the DAX. In addition to that, Russell 2000 is 1.28 times more volatile than DAX. It trades about -0.07 of its total potential returns per unit of risk. DAX is currently generating about -0.01 per unit of volatility. If you would invest  1,222,239  in DAX on May 19, 2019 and sell it today you would lose (7,661)  from holding DAX or give up 0.63% of portfolio value over 30 days.

Pair Corralation between Russell 2000 and DAX

0.0
Time Period2 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy97.5%
ValuesDaily Returns

Diversification Opportunities for Russell 2000 and DAX

Russell 2000  diversification synergy

Pay attention

Overlapping area represents the amount of risk that can be diversified away by holding Russell 2000 and DAX in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on DAX and Russell 2000 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 Russell 2000 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 Russell 2000 i.e. Russell 2000 and DAX go up and down completely randomly.
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