Correlation Between DAX Index and Hexagon Purus
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By analyzing existing cross correlation between DAX Index and Hexagon Purus AS, you can compare the effects of market volatilities on DAX Index and Hexagon Purus 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 Hexagon Purus. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Hexagon Purus.
Diversification Opportunities for DAX Index and Hexagon Purus
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DAX and Hexagon is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Hexagon Purus AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hexagon Purus AS 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 Hexagon Purus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hexagon Purus AS has no effect on the direction of DAX Index i.e., DAX Index and Hexagon Purus go up and down completely randomly.
Pair Corralation between DAX Index and Hexagon Purus
Assuming the 90 days trading horizon DAX Index is expected to generate 0.2 times more return on investment than Hexagon Purus. However, DAX Index is 4.92 times less risky than Hexagon Purus. It trades about -0.05 of its potential returns per unit of risk. Hexagon Purus AS is currently generating about -0.24 per unit of risk. If you would invest 1,947,807 in DAX Index on August 30, 2024 and sell it today you would lose (21,632) from holding DAX Index or give up 1.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Hexagon Purus AS
Performance |
| Timeline |
DAX Index and Hexagon Purus Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Hexagon Purus AS
Pair trading matchups for Hexagon Purus
Pair Trading with DAX Index and Hexagon Purus
The main advantage of trading using opposite DAX Index and Hexagon Purus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Hexagon Purus 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 Hexagon Purus will offset losses from the drop in Hexagon Purus' long position.| DAX Index vs. NEWELL RUBBERMAID | DAX Index vs. APPLIED MATERIALS | DAX Index vs. Compagnie Plastic Omnium | DAX Index vs. Vulcan Materials |
| Hexagon Purus vs. Monster Beverage Corp | Hexagon Purus vs. Singapore Telecommunications Limited | Hexagon Purus vs. Cogent Communications Holdings | Hexagon Purus vs. Computer And Technologies |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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