DAX Midcap Correlations

MDAXI Index   26,793  342.36  1.29%   
The current 90-days correlation between DAX Midcap and Hyster Yale Materials Handling is 0.19 (i.e., Average diversification). The correlation of DAX Midcap is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
The ability to find closely correlated positions to DAX Midcap could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace DAX Midcap when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back DAX Midcap - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling DAX Midcap to buy it.

Moving together with DAX Index

  0.66E6Q Gold Road ResourcesPairCorr
  0.7E908 Lyxor 1PairCorr
  0.84DBPE Xtrackers LevDAXPairCorr

Moving against DAX Index

  0.83DBPD Xtrackers ShortDAXPairCorr

Related Correlations Analysis

Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations   
NY7NY70
GTRNY7
GTRNY70
GTRRYQ
NY7RYQ
NY70RYQ
  
High negative correlations   
NY70HYEA
NY7HYEA
RYQHYEA
GTRHYEA
RYQT6W

Risk-Adjusted Indicators

There is a big difference between DAX Index performing well and DAX Midcap Index doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze DAX Midcap's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

Did you try this?

Run Equity Valuation Now

   

Equity Valuation

Check real value of public entities based on technical and fundamental data
All  Next Launch Module

DAX Midcap Distribution of Returns

   Predicted Return Density   
       Returns  
DAX Midcap's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how dax index's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a DAX Midcap Price Volatility?

Several factors can influence a index's market volatility:

Industry

Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

DAX Midcap Against Global Markets

Submit DAX Midcap Story

Become Macroaxis DAX Midcap Contributor

Submit your story or your unique perspective on DAX Midcap and reach a very diverse and influential demographic landscape united by one goal - building optimal portfolios
Submit Macroaxis Story
Submit DAX Midcap Story