Correlation Analysis Between Shanghai and DAX

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

Comparative Performance

 Predicted Return Density 
      Returns 

Shanghai  vs.  DAX

 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Shanghai is expected to under-perform the DAX. In addition to that, Shanghai is 1.65 times more volatile than DAX. It trades about -0.22 of its total potential returns per unit of risk. DAX is currently generating about -0.04 per unit of volatility. If you would invest  1,222,239  in DAX on May 18, 2019 and sell it today you would lose (19,859)  from holding DAX or give up 1.62% of portfolio value over 30 days.

Pair Corralation between Shanghai and DAX

0.4
Time Period2 Months [change]
DirectionPositive 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Shanghai and DAX

Shanghai diversification synergy

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding Shanghai and DAX in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on DAX and Shanghai 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 Shanghai 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 Shanghai i.e. Shanghai and DAX go up and down completely randomly.
    Optimize
See also your portfolio center. Please also try Cryptocurrency Arbitrage module to find pairs of digital assets on multiple exchanges that are traded at a risk free arbitrage.


 
Search macroaxis.com