Changeover from Dax30 to Dax40 in September

• 08/11/2021 at 9:34 PM #175129
  phoentzs

  10 new stocks will be added to the DAX in September. So there will be 40 stocks in the DAX. How do you deal with it? _Does anyone have experience with that? Will that change the structure of the DAX? Should you first stop all algorithms and see what happens or recalculate everything?

  

  phoentzs

  Participant

  Topics: 86

  Replies: 955

  Been thanked: 195 times
  08/12/2021 at 9:44 AM #175132
  Eric

  Whats the market cap on these 10?

  How much in percent of the index will these 10 new be?

  

  Eric

  Participant

  Topics: 18

  Replies: 441

  Been thanked: 84 times
  08/12/2021 at 10:29 AM #175143
  phoentzs

  I have no idea. I heard about it for the first time yesterday.

  

  phoentzs

  Participant

  Topics: 86

  Replies: 955

  Been thanked: 195 times
  08/12/2021 at 11:35 AM #175157
  Magifina

  Dax will be near 18000 or 19000. We don’t officially know which enterprises will integrate the index and the impact that they will have. It will depend of there activity sector and there capitalization.
  Actually Dax30 is composed of industrial entreprises and breakout or trend following strategies works quite well. If the 10 entreprises are industrial or with a cyclical business like volkwagen for example then trend following and breakout strategies will continue to work. If the 10 enterprises are more defensive, Dax 40 might have more mean reverted moves.

  

  Magifina

  Participant

  Topics: 2

  Replies: 41

  Been thanked: 12 times
  08/12/2021 at 11:48 AM #175159
  phoentzs

  Damn … I don’t really have mean reversion for the dax.

  

  phoentzs

  Participant

  Topics: 86

  Replies: 955

  Been thanked: 195 times
  08/12/2021 at 12:09 PM #175162
  Eric

  Airbus seems to be the big one?

  https://www.merkur.de/wirtschaft/dax-40-firmen-neu-erweiterung-aufstieg-kandidaten-aufnahme-zusammensetzung-airbus-symrise-zalando-brenntag-zr-90878926.html

  and a couple “health care”?

  

  Eric

  Participant

  Topics: 18

  Replies: 441

  Been thanked: 84 times
  08/12/2021 at 1:17 PM #175165
  XORANDNOT

  Magifina wrote:

  Dax will be near 18000 or 19000.

  Do you really think that the DAX price will change by 3000 within one day ? I’d rather think that the price after the change will stay the same as the day before, but the weighting of all 40 members will be adapted to the new situation.

  

  XORANDNOT

  Participant

  Topics: 13

  Replies: 186

  Been thanked: 41 times
  08/12/2021 at 1:19 PM #175167
  XORANDNOT

  And at least in my theory, price movements of the DAX could be a littler smoother than before, because there are more members over which the price is averaged. The new members have all been in MDAX before, so they are not really new to the big indices.

  

  XORANDNOT

  Participant

  Topics: 13

  Replies: 186

  Been thanked: 41 times
  08/12/2021 at 1:33 PM #175169
  XORANDNOT

  I just found this :

  The DAX 40 will start with exactly the same price as the DAX 30 shows on the closing price chart on the Frankfurt Stock Exchange on its last trading day. If, for example, the DAX 30 exits trading on its last day at 13,000 points, the DAX 40 will be mathematically adjusted exactly so that the sum of the 40 shares is also 13,000 points.

  1 user thanked author for this post.

  GraHal

  

  XORANDNOT

  Participant

  Topics: 13

  Replies: 186

  Been thanked: 41 times
  08/12/2021 at 7:06 PM #175203
  phoentzs

  This week I’ll be a little careful and wait and see with the algorithms.

  

  phoentzs

  Participant

  Topics: 86

  Replies: 955

  Been thanked: 195 times
• Author
  Posts