## Glossary

- Call (warrant)
- Cancelled order
- Cap (investment and leverage products)
- Capital increase
- Capital market
- Capital reduction
- Capital stock
- Cash dividend
- Cash market
- Cash settlement (warrants)
- Cash settlement price
- Cashflow
- CDAX
- Central bank
- Certificate
- Certificate of renewal
- Changes to the composition of an index
- Chart
- Chart analysis
- Classic All Share
- Clearing
- Close out
- Closed-end fund
- Closing Price
- Coco bond
- Collective custody
- Commercial paper
- Commission
- Commission trading
- Commodity futures
- Commodity futures exchange
- Common gap
- Compliance guidelines
- Conditional capital increase
- Consumer Confidence
- Continuous trading
- Convertible bond
- Cooperative stock exchanges
- Corporate bond
- Correlation coefficient
- Counter transaction
- Countercyclical investment
- Countercyclical stocks
- Country risk
- Coupon
- Covered warrant
- Creation
- Credit risk
- Creditworthiness
- Cum
- Currency bond
- Cyclical shares
- Cyclical stocks

# Correlation coefficient

The value of the correlation coefficient ranges between -1 and +1. If the correlation coefficient of a stock to an index is +1, then the price of the stock always changes by the same percentage as the index; i.e., the development of the two variables is exactly parallel. In this special case, the stock has a beta factor of 1. The smaller the coefficient, the weaker the correlation. A correlation coefficient of zero indicates that movements in the price of the stock are completely unrelated to those of the index. If the correlation coefficient is negative, then the stock price and the index move in opposite directions.

Deutsche Börse AG calculates the correlation coefficients of the shares in DAX® and MDAX® in relation to their respective index. The correlation of sector indices to CDAX® are also calculated.