Correlation Between DAX Index and Antofagasta Plc
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By analyzing existing cross correlation between DAX Index and Antofagasta plc, you can compare the effects of market volatilities on DAX Index and Antofagasta Plc 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 Antofagasta Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Antofagasta Plc.
Diversification Opportunities for DAX Index and Antofagasta Plc
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between DAX and Antofagasta is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Antofagasta plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antofagasta plc 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 Antofagasta Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antofagasta plc has no effect on the direction of DAX Index i.e., DAX Index and Antofagasta Plc go up and down completely randomly.
Pair Corralation between DAX Index and Antofagasta Plc
Assuming the 90 days trading horizon DAX Index is expected to generate 0.31 times more return on investment than Antofagasta Plc. However, DAX Index is 3.26 times less risky than Antofagasta Plc. It trades about 0.45 of its potential returns per unit of risk. Antofagasta plc is currently generating about 0.11 per unit of risk. If you would invest 1,926,370 in DAX Index on September 15, 2024 and sell it today you would earn a total of 114,222 from holding DAX Index or generate 5.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
DAX Index vs. Antofagasta plc
Performance |
| Timeline |
DAX Index and Antofagasta Plc Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Antofagasta plc
Pair trading matchups for Antofagasta Plc
Pair Trading with DAX Index and Antofagasta Plc
The main advantage of trading using opposite DAX Index and Antofagasta Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Antofagasta Plc 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 Antofagasta Plc will offset losses from the drop in Antofagasta Plc's long position.| DAX Index vs. Flutter Entertainment PLC | DAX Index vs. LG Display Co | DAX Index vs. TOWNSQUARE MEDIA INC | DAX Index vs. Prosiebensat 1 Media |
| Antofagasta Plc vs. Khiron Life Sciences | Antofagasta Plc vs. Virtus Investment Partners | Antofagasta Plc vs. Postal Savings Bank | Antofagasta Plc vs. ECHO INVESTMENT ZY |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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