Correlation Between DAX Index and Lundin Mining
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By analyzing existing cross correlation between DAX Index and Lundin Mining, you can compare the effects of market volatilities on DAX Index and Lundin 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 Lundin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Lundin Mining.
Diversification Opportunities for DAX Index and Lundin Mining
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and Lundin is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Lundin Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lundin 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 Lundin Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lundin Mining has no effect on the direction of DAX Index i.e., DAX Index and Lundin Mining go up and down completely randomly.
Pair Corralation between DAX Index and Lundin Mining
Assuming the 90 days trading horizon DAX Index is expected to generate 0.31 times more return on investment than Lundin Mining. However, DAX Index is 3.25 times less risky than Lundin Mining. It trades about 0.5 of its potential returns per unit of risk. Lundin Mining is currently generating about -0.03 per unit of risk. If you would invest 1,903,364 in DAX Index on September 13, 2024 and sell it today you would earn a total of 136,552 from holding DAX Index or generate 7.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Lundin Mining
Performance |
| Timeline |
DAX Index and Lundin Mining Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Lundin Mining
Pair trading matchups for Lundin Mining
Pair Trading with DAX Index and Lundin Mining
The main advantage of trading using opposite DAX Index and Lundin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Lundin 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 Lundin Mining will offset losses from the drop in Lundin Mining's long position.| DAX Index vs. Consolidated Communications Holdings | DAX Index vs. Spirent Communications plc | DAX Index vs. Gamma Communications plc | DAX Index vs. CITIC Telecom International |
| Lundin Mining vs. Southern Copper | Lundin Mining vs. Sandfire Resources Limited | Lundin Mining vs. Superior Plus Corp | Lundin Mining vs. NMI Holdings |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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