Correlation Between Zijin Mining and DAX Index
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By analyzing existing cross correlation between Zijin Mining Group and DAX Index, you can compare the effects of market volatilities on Zijin Mining 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 Zijin Mining with a short position of DAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and DAX Index.
Diversification Opportunities for Zijin Mining and DAX Index
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zijin and DAX is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and DAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAX Index and Zijin Mining 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 Zijin Mining Group 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 Zijin Mining i.e., Zijin Mining and DAX Index go up and down completely randomly.
Pair Corralation between Zijin Mining and DAX Index
Assuming the 90 days horizon Zijin Mining is expected to generate 2.37 times less return on investment than DAX Index. In addition to that, Zijin Mining is 4.36 times more volatile than DAX Index. It trades about 0.02 of its total potential returns per unit of risk. DAX Index is currently generating about 0.25 per unit of volatility. If you would invest 1,944,860 in DAX Index on September 12, 2024 and sell it today you would earn a total of 88,056 from holding DAX Index or generate 4.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. DAX Index
Performance |
| Timeline |
Zijin Mining and DAX Index Volatility Contrast
Predicted Return Density |
| Returns |
Zijin Mining Group
Pair trading matchups for Zijin Mining
DAX Index
Pair trading matchups for DAX Index
Pair Trading with Zijin Mining and DAX Index
The main advantage of trading using opposite Zijin Mining and DAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining 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.| Zijin Mining vs. BHP Group Limited | Zijin Mining vs. Vale SA | Zijin Mining vs. Superior Plus Corp | Zijin Mining vs. SIVERS SEMICONDUCTORS AB |
| DAX Index vs. Arrow Electronics | DAX Index vs. CANON MARKETING JP | DAX Index vs. The Trade Desk | DAX Index vs. METHODE ELECTRONICS |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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