Correlation Between DAX Index and Silvercorp Metals
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By analyzing existing cross correlation between DAX Index and Silvercorp Metals, you can compare the effects of market volatilities on DAX Index and Silvercorp Metals 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 Silvercorp Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Silvercorp Metals.
Diversification Opportunities for DAX Index and Silvercorp Metals
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DAX and Silvercorp is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Silvercorp Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silvercorp Metals 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 Silvercorp Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silvercorp Metals has no effect on the direction of DAX Index i.e., DAX Index and Silvercorp Metals go up and down completely randomly.
Pair Corralation between DAX Index and Silvercorp Metals
Assuming the 90 days trading horizon DAX Index is expected to generate 0.14 times more return on investment than Silvercorp Metals. However, DAX Index is 7.38 times less risky than Silvercorp Metals. It trades about 0.48 of its potential returns per unit of risk. Silvercorp Metals is currently generating about -0.23 per unit of risk. If you would invest 1,906,031 in DAX Index on September 20, 2024 and sell it today you would earn a total of 118,226 from holding DAX Index or generate 6.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Silvercorp Metals
Performance |
| Timeline |
DAX Index and Silvercorp Metals Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Silvercorp Metals
Pair trading matchups for Silvercorp Metals
Pair Trading with DAX Index and Silvercorp Metals
The main advantage of trading using opposite DAX Index and Silvercorp Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Silvercorp Metals 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 Silvercorp Metals will offset losses from the drop in Silvercorp Metals' long position.| DAX Index vs. Warner Music Group | DAX Index vs. Take Two Interactive Software | DAX Index vs. Sixt Leasing SE | DAX Index vs. JAPAN TOBACCO UNSPADR12 |
| Silvercorp Metals vs. Superior Plus Corp | Silvercorp Metals vs. NMI Holdings | Silvercorp Metals vs. SIVERS SEMICONDUCTORS AB | Silvercorp Metals vs. NorAm Drilling AS |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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