Correlation Between DAX Index and Barrick Gold
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By analyzing existing cross correlation between DAX Index and Barrick Gold, you can compare the effects of market volatilities on DAX Index and Barrick Gold 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 DAX Index with a short position of Barrick Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Barrick Gold.
Diversification Opportunities for DAX Index and Barrick Gold
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between DAX and Barrick is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Barrick Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barrick Gold and DAX Index 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 DAX Index are associated (or correlated) with Barrick Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barrick Gold has no effect on the direction of DAX Index i.e., DAX Index and Barrick Gold go up and down completely randomly.
Pair Corralation between DAX Index and Barrick Gold
Assuming the 90 days trading horizon DAX Index is expected to generate 0.52 times more return on investment than Barrick Gold. However, DAX Index is 1.93 times less risky than Barrick Gold. It trades about 0.1 of its potential returns per unit of risk. Barrick Gold is currently generating about -0.13 per unit of risk. If you would invest 1,925,497 in DAX Index on September 2, 2024 and sell it today you would earn a total of 37,148 from holding DAX Index or generate 1.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Barrick Gold
Performance |
| Timeline |
DAX Index and Barrick Gold Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Barrick Gold
Pair trading matchups for Barrick Gold
Pair Trading with DAX Index and Barrick Gold
The main advantage of trading using opposite DAX Index and Barrick Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Barrick Gold 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 Barrick Gold will offset losses from the drop in Barrick Gold's long position.| DAX Index vs. FEMALE HEALTH | DAX Index vs. CDN IMPERIAL BANK | DAX Index vs. Webster Financial | DAX Index vs. Cardinal Health |
| Barrick Gold vs. FARO Technologies | Barrick Gold vs. Tianjin Capital Environmental | Barrick Gold vs. GFL ENVIRONM | Barrick Gold vs. Insteel Industries |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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