Correlation Between DAX Index and MC Mining
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By analyzing existing cross correlation between DAX Index and MC Mining, you can compare the effects of market volatilities on DAX Index and MC Mining 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 MC Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and MC Mining.
Diversification Opportunities for DAX Index and MC Mining
Average diversification
The 3 months correlation between DAX and G1V is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and MC Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MC Mining 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 MC Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MC Mining has no effect on the direction of DAX Index i.e., DAX Index and MC Mining go up and down completely randomly.
Pair Corralation between DAX Index and MC Mining
Assuming the 90 days trading horizon DAX Index is expected to generate 231.93 times less return on investment than MC Mining. But when comparing it to its historical volatility, DAX Index is 173.19 times less risky than MC Mining. It trades about 0.1 of its potential returns per unit of risk. MC Mining is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 7.70 in MC Mining on September 3, 2024 and sell it today you would lose (7.55) from holding MC Mining or give up 98.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. MC Mining
Performance |
| Timeline |
DAX Index and MC Mining Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
MC Mining
Pair trading matchups for MC Mining
Pair Trading with DAX Index and MC Mining
The main advantage of trading using opposite DAX Index and MC Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, MC Mining 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 MC Mining will offset losses from the drop in MC Mining's long position.| DAX Index vs. SPORT LISBOA E | DAX Index vs. FUYO GENERAL LEASE | DAX Index vs. Live Nation Entertainment | DAX Index vs. Transport International Holdings |
| MC Mining vs. G8 EDUCATION | MC Mining vs. NEWELL RUBBERMAID | MC Mining vs. IDP EDUCATION LTD | MC Mining vs. CHINA EDUCATION GROUP |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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