Correlation Between DAX Index and Newmont
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By analyzing existing cross correlation between DAX Index and Newmont, you can compare the effects of market volatilities on DAX Index and Newmont 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 Newmont. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Newmont.
Diversification Opportunities for DAX Index and Newmont
Very good diversification
The 3 months correlation between DAX and Newmont is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Newmont in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newmont 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 Newmont. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newmont has no effect on the direction of DAX Index i.e., DAX Index and Newmont go up and down completely randomly.
Pair Corralation between DAX Index and Newmont
Assuming the 90 days trading horizon DAX Index is expected to generate 0.46 times more return on investment than Newmont. However, DAX Index is 2.16 times less risky than Newmont. It trades about 0.5 of its potential returns per unit of risk. Newmont is currently generating about 0.13 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Newmont
Performance |
| Timeline |
DAX Index and Newmont Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Newmont
Pair trading matchups for Newmont
Pair Trading with DAX Index and Newmont
The main advantage of trading using opposite DAX Index and Newmont positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Newmont 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 Newmont will offset losses from the drop in Newmont'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 |
| Newmont vs. Lion One Metals | Newmont vs. Ping An Insurance | Newmont vs. Universal Insurance Holdings | Newmont vs. MSAD INSURANCE |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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