Correlation Between DAX Index and First Majestic
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By analyzing existing cross correlation between DAX Index and First Majestic Silver, you can compare the effects of market volatilities on DAX Index and First Majestic 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 First Majestic. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and First Majestic.
Diversification Opportunities for DAX Index and First Majestic
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between DAX and First is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and First Majestic Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Majestic Silver 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 First Majestic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Majestic Silver has no effect on the direction of DAX Index i.e., DAX Index and First Majestic go up and down completely randomly.
Pair Corralation between DAX Index and First Majestic
Assuming the 90 days trading horizon DAX Index is expected to generate 0.19 times more return on investment than First Majestic. However, DAX Index is 5.34 times less risky than First Majestic. It trades about 0.11 of its potential returns per unit of risk. First Majestic Silver is currently generating about 0.02 per unit of risk. If you would invest 1,599,267 in DAX Index on September 23, 2024 and sell it today you would earn a total of 389,208 from holding DAX Index or generate 24.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. First Majestic Silver
Performance |
| Timeline |
DAX Index and First Majestic Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
First Majestic Silver
Pair trading matchups for First Majestic
Pair Trading with DAX Index and First Majestic
The main advantage of trading using opposite DAX Index and First Majestic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, First Majestic 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 First Majestic will offset losses from the drop in First Majestic's long position.| DAX Index vs. alstria office REIT AG | DAX Index vs. OFFICE DEPOT | DAX Index vs. CHINA EDUCATION GROUP | DAX Index vs. MAVEN WIRELESS SWEDEN |
| First Majestic vs. Pan American Silver | First Majestic vs. Silvercorp Metals | First Majestic vs. Endeavour Silver Corp | First Majestic vs. Dolly Varden Silver |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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