Correlation Between DAX Index and MAG SILVER
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By analyzing existing cross correlation between DAX Index and MAG SILVER, you can compare the effects of market volatilities on DAX Index and MAG SILVER 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 MAG SILVER. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and MAG SILVER.
Diversification Opportunities for DAX Index and MAG SILVER
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between DAX and MAG is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and MAG SILVER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAG 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 MAG SILVER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAG SILVER has no effect on the direction of DAX Index i.e., DAX Index and MAG SILVER go up and down completely randomly.
Pair Corralation between DAX Index and MAG SILVER
Assuming the 90 days trading horizon DAX Index is expected to generate 0.31 times more return on investment than MAG SILVER. However, DAX Index is 3.28 times less risky than MAG SILVER. It trades about 0.08 of its potential returns per unit of risk. MAG SILVER is currently generating about 0.01 per unit of risk. If you would invest 1,503,356 in DAX Index on October 11, 2024 and sell it today you would earn a total of 528,354 from holding DAX Index or generate 35.14% 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. MAG SILVER
Performance |
| Timeline |
DAX Index and MAG SILVER Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
MAG SILVER
Pair trading matchups for MAG SILVER
Pair Trading with DAX Index and MAG SILVER
The main advantage of trading using opposite DAX Index and MAG SILVER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, MAG SILVER 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 MAG SILVER will offset losses from the drop in MAG SILVER's long position.| DAX Index vs. Scottish Mortgage Investment | DAX Index vs. Keck Seng Investments | DAX Index vs. Lendlease Group | DAX Index vs. FIRST SAVINGS FINL |
| MAG SILVER vs. Cincinnati Financial Corp | MAG SILVER vs. The Hanover Insurance | MAG SILVER vs. SUN LIFE FINANCIAL | MAG SILVER vs. National Beverage Corp |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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