Correlation Between DAX Index and Southern Copper
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By analyzing existing cross correlation between DAX Index and Southern Copper, you can compare the effects of market volatilities on DAX Index and Southern Copper 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 Southern Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Southern Copper.
Diversification Opportunities for DAX Index and Southern Copper
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DAX and Southern is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Southern Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern Copper 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 Southern Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern Copper has no effect on the direction of DAX Index i.e., DAX Index and Southern Copper go up and down completely randomly.
Pair Corralation between DAX Index and Southern Copper
Assuming the 90 days trading horizon DAX Index is expected to generate 0.33 times more return on investment than Southern Copper. However, DAX Index is 3.05 times less risky than Southern Copper. It trades about 0.1 of its potential returns per unit of risk. Southern Copper is currently generating about -0.06 per unit of risk. If you would invest 1,891,850 in DAX Index on September 25, 2024 and sell it today you would earn a total of 93,027 from holding DAX Index or generate 4.92% 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. Southern Copper
Performance |
Timeline |
DAX Index and Southern Copper Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
Southern Copper
Pair trading matchups for Southern Copper
Pair Trading with DAX Index and Southern Copper
The main advantage of trading using opposite DAX Index and Southern Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Southern Copper 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 Southern Copper will offset losses from the drop in Southern Copper's long position.DAX Index vs. Universal Display | DAX Index vs. Playtech plc | DAX Index vs. Columbia Sportswear | DAX Index vs. PLAYMATES TOYS |
Southern Copper vs. INTERCONT HOTELS | Southern Copper vs. Insteel Industries | Southern Copper vs. Pebblebrook Hotel Trust | Southern Copper vs. LEGACY IRON ORE |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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