Correlation Between DAX Index and Impala Platinum
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By analyzing existing cross correlation between DAX Index and Impala Platinum Holdings, you can compare the effects of market volatilities on DAX Index and Impala Platinum 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 Impala Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Impala Platinum.
Diversification Opportunities for DAX Index and Impala Platinum
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between DAX and Impala is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Impala Platinum Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impala Platinum Holdings 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 Impala Platinum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impala Platinum Holdings has no effect on the direction of DAX Index i.e., DAX Index and Impala Platinum go up and down completely randomly.
Pair Corralation between DAX Index and Impala Platinum
Assuming the 90 days trading horizon DAX Index is expected to generate 0.2 times more return on investment than Impala Platinum. However, DAX Index is 5.08 times less risky than Impala Platinum. It trades about 0.14 of its potential returns per unit of risk. Impala Platinum Holdings is currently generating about -0.05 per unit of risk. If you would invest 1,907,754 in DAX Index on September 1, 2024 and sell it today you would earn a total of 54,891 from holding DAX Index or generate 2.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
DAX Index vs. Impala Platinum Holdings
Performance |
| Timeline |
DAX Index and Impala Platinum Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Impala Platinum Holdings
Pair trading matchups for Impala Platinum
Pair Trading with DAX Index and Impala Platinum
The main advantage of trading using opposite DAX Index and Impala Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Impala Platinum 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 Impala Platinum will offset losses from the drop in Impala Platinum's long position.| DAX Index vs. BE Semiconductor Industries | DAX Index vs. REGAL ASIAN INVESTMENTS | DAX Index vs. SEI INVESTMENTS | DAX Index vs. National Beverage Corp |
| Impala Platinum vs. BHP Group Limited | Impala Platinum vs. Rio Tinto Group | Impala Platinum vs. Rio Tinto Group | Impala Platinum vs. Vale SA |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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