Correlation Between DAX Index and Perseus Mining
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By analyzing existing cross correlation between DAX Index and Perseus Mining Limited, you can compare the effects of market volatilities on DAX Index and Perseus 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 Perseus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Perseus Mining.
Diversification Opportunities for DAX Index and Perseus Mining
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between DAX and Perseus is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Perseus Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perseus Mining 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 Perseus Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perseus Mining has no effect on the direction of DAX Index i.e., DAX Index and Perseus Mining go up and down completely randomly.
Pair Corralation between DAX Index and Perseus Mining
Assuming the 90 days trading horizon DAX Index is expected to generate 0.49 times more return on investment than Perseus Mining. However, DAX Index is 2.05 times less risky than Perseus Mining. It trades about -0.03 of its potential returns per unit of risk. Perseus Mining Limited is currently generating about -0.12 per unit of risk. If you would invest 1,953,162 in DAX Index on August 28, 2024 and sell it today you would lose (12,642) from holding DAX Index or give up 0.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Perseus Mining Limited
Performance |
| Timeline |
DAX Index and Perseus Mining Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Perseus Mining Limited
Pair trading matchups for Perseus Mining
Pair Trading with DAX Index and Perseus Mining
The main advantage of trading using opposite DAX Index and Perseus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Perseus 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 Perseus Mining will offset losses from the drop in Perseus Mining's long position.| DAX Index vs. ELMOS SEMICONDUCTOR | DAX Index vs. ALTAIR RES INC | DAX Index vs. Fair Isaac Corp | DAX Index vs. Taiwan Semiconductor Manufacturing |
| Perseus Mining vs. Franco Nevada | Perseus Mining vs. Agnico Eagle Mines | Perseus Mining vs. Superior Plus Corp | Perseus Mining vs. NMI Holdings |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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