Correlation Between ADRIATIC METALS and DAX Index
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By analyzing existing cross correlation between ADRIATIC METALS LS 013355 and DAX Index, you can compare the effects of market volatilities on ADRIATIC METALS and DAX Index and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in ADRIATIC METALS with a short position of DAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of ADRIATIC METALS and DAX Index.
Diversification Opportunities for ADRIATIC METALS and DAX Index
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ADRIATIC and DAX is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding ADRIATIC METALS LS 013355 and DAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAX Index and ADRIATIC METALS is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on ADRIATIC METALS LS 013355 are associated (or correlated) with DAX Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAX Index has no effect on the direction of ADRIATIC METALS i.e., ADRIATIC METALS and DAX Index go up and down completely randomly.
Pair Corralation between ADRIATIC METALS and DAX Index
Assuming the 90 days trading horizon ADRIATIC METALS LS 013355 is expected to under-perform the DAX Index. In addition to that, ADRIATIC METALS is 3.25 times more volatile than DAX Index. It trades about -0.05 of its total potential returns per unit of risk. DAX Index is currently generating about -0.05 per unit of volatility. If you would invest 1,953,162 in DAX Index on August 29, 2024 and sell it today you would lose (23,564) from holding DAX Index or give up 1.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ADRIATIC METALS LS 013355 vs. DAX Index
Performance |
| Timeline |
ADRIATIC METALS and DAX Index Volatility Contrast
Predicted Return Density |
| Returns |
ADRIATIC METALS LS 013355
Pair trading matchups for ADRIATIC METALS
DAX Index
Pair trading matchups for DAX Index
Pair Trading with ADRIATIC METALS and DAX Index
The main advantage of trading using opposite ADRIATIC METALS and DAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ADRIATIC METALS position performs unexpectedly, DAX Index can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in DAX Index will offset losses from the drop in DAX Index's long position.| ADRIATIC METALS vs. MCEWEN MINING INC | ADRIATIC METALS vs. Western Copper and | ADRIATIC METALS vs. GRIFFIN MINING LTD | ADRIATIC METALS vs. CAREER EDUCATION |
| DAX Index vs. ELMOS SEMICONDUCTOR | DAX Index vs. ALTAIR RES INC | DAX Index vs. Fair Isaac Corp | DAX Index vs. Taiwan Semiconductor Manufacturing |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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