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How would you compare the performance of a German stock listed in DAX? I heard many use Euro Stoxx 50. But wouldn’t be the obvious choice to use the DAX? Also, would you use DAX INDEX or DAX FUTURES?

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    $\begingroup$ (1) If you usually invest in European stocks use EuroStoxx 50, if you usually invest only in German stocks (which I don't recommend, why not diversify a little) use DAX. (2) When you invest in a stock or an index, you put in your own money, with a future you only put in a small amount. Therefore use indexes to assess the performance of a stock, not futures $\endgroup$ – Alex C May 7 at 20:34
  • $\begingroup$ You are right, diversified is good. But it is rather out of curiosity. $\endgroup$ – Diamir May 7 at 20:35
  • $\begingroup$ In my personal opinion national stock indexes like DAX, CAC40, MIB etc. don't make sense any more, with the euro. "We are all European investors now". $\endgroup$ – Alex C May 8 at 0:51
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    $\begingroup$ I beg to differ from the statement of @AlexC, that national stock indices don't make sense any more. In empirical research, we often measure stock/portfolio (abnormal) performances with regard to risk factor models like Fama/French. Both authors provide evidence in this paper, that the construction of the factor-returns for each country is more suitable than for an integrated region. The abstract states: "Integrated pricing across regions does not get strong support in our tests." $\endgroup$ – skoestlmeier May 8 at 7:18

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