German DAX Had a Profitable 2005

The German stock market as measured by the DAX (^GDAXI) index closed at 5,408.56, up 26% for 2005. Investors who bought the April 20 low gained 29.43% for the year.

For the 257 daily closes there were 32,896 buy and sell combinations. The percent return (gain, break even or loss) of each buy and sell combination is the result of buying on a given day and selling (realized return) or holding (unrealized return) on another day. Because most of 2005 was on the price upside, the profitable buy and sell combinations outnumbered the unprofitable buy and sell combinations 29,305 (89.08%) to 3,591 (10.92%).

The average return for all of the buy and sell combinations was 8.92%. The average return is computed using the return of each buy and sell combination so the small one-day and two-day returns are averaged with the larger multiple-day returns.

The percent returns chart shows the profitable buy and sell combinations in green and the unprofitable ones in red.

The winners and losers map looks straight down on the percent returns chart to show the profitable (green) and unprofitable (red) returns of all buy and sell combinations. You can easily see the predominance of winning investments.