Correlation Between DAX Index and Eskay Mining
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By analyzing existing cross correlation between DAX Index and Eskay Mining Corp, you can compare the effects of market volatilities on DAX Index and Eskay 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 Eskay Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Eskay Mining.
Diversification Opportunities for DAX Index and Eskay Mining
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between DAX and Eskay is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Eskay Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eskay Mining Corp 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 Eskay Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eskay Mining Corp has no effect on the direction of DAX Index i.e., DAX Index and Eskay Mining go up and down completely randomly.
Pair Corralation between DAX Index and Eskay Mining
Assuming the 90 days trading horizon DAX Index is expected to generate 6.79 times less return on investment than Eskay Mining. But when comparing it to its historical volatility, DAX Index is 16.28 times less risky than Eskay Mining. It trades about 0.41 of its potential returns per unit of risk. Eskay Mining Corp is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 9.10 in Eskay Mining Corp on September 19, 2024 and sell it today you would earn a total of 2.90 from holding Eskay Mining Corp or generate 31.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Eskay Mining Corp
Performance |
| Timeline |
DAX Index and Eskay Mining Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Eskay Mining Corp
Pair trading matchups for Eskay Mining
Pair Trading with DAX Index and Eskay Mining
The main advantage of trading using opposite DAX Index and Eskay Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Eskay 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 Eskay Mining will offset losses from the drop in Eskay Mining's long position.| DAX Index vs. Sekisui Chemical Co | DAX Index vs. United Internet AG | DAX Index vs. X FAB Silicon Foundries | DAX Index vs. TIANDE CHEMICAL |
| Eskay Mining vs. American Lithium Corp | Eskay Mining vs. ADRIATIC METALS LS 013355 | Eskay Mining vs. Superior Plus Corp | Eskay Mining vs. SIVERS SEMICONDUCTORS AB |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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