Correlation Between DAX Index and NEXA RESOURCES
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By analyzing existing cross correlation between DAX Index and NEXA RESOURCES SA, you can compare the effects of market volatilities on DAX Index and NEXA RESOURCES 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 NEXA RESOURCES. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and NEXA RESOURCES.
Diversification Opportunities for DAX Index and NEXA RESOURCES
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between DAX and NEXA is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and NEXA RESOURCES SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEXA RESOURCES SA 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 NEXA RESOURCES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEXA RESOURCES SA has no effect on the direction of DAX Index i.e., DAX Index and NEXA RESOURCES go up and down completely randomly.
Pair Corralation between DAX Index and NEXA RESOURCES
Assuming the 90 days trading horizon DAX Index is expected to generate 1.26 times less return on investment than NEXA RESOURCES. But when comparing it to its historical volatility, DAX Index is 1.96 times less risky than NEXA RESOURCES. It trades about 0.14 of its potential returns per unit of risk. NEXA RESOURCES SA is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 700.00 in NEXA RESOURCES SA on September 1, 2024 and sell it today you would earn a total of 25.00 from holding NEXA RESOURCES SA or generate 3.57% 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. NEXA RESOURCES SA
Performance |
| Timeline |
DAX Index and NEXA RESOURCES Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
NEXA RESOURCES SA
Pair trading matchups for NEXA RESOURCES
Pair Trading with DAX Index and NEXA RESOURCES
The main advantage of trading using opposite DAX Index and NEXA RESOURCES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, NEXA RESOURCES 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 NEXA RESOURCES will offset losses from the drop in NEXA RESOURCES'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 |
| NEXA RESOURCES vs. Apollo Medical Holdings | NEXA RESOURCES vs. COMMERCIAL VEHICLE | NEXA RESOURCES vs. AVITA Medical | NEXA RESOURCES vs. ONWARD MEDICAL BV |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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