Correlation Between DAX Index and Halma Plc
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By analyzing existing cross correlation between DAX Index and Halma plc, you can compare the effects of market volatilities on DAX Index and Halma Plc 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 Halma Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Halma Plc.
Diversification Opportunities for DAX Index and Halma Plc
Poor diversification
The 3 months correlation between DAX and Halma is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Halma plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halma plc 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 Halma Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halma plc has no effect on the direction of DAX Index i.e., DAX Index and Halma Plc go up and down completely randomly.
Pair Corralation between DAX Index and Halma Plc
Assuming the 90 days trading horizon DAX Index is expected to generate 0.62 times more return on investment than Halma Plc. However, DAX Index is 1.6 times less risky than Halma Plc. It trades about 0.13 of its potential returns per unit of risk. Halma plc is currently generating about -0.35 per unit of risk. If you would invest 2,024,637 in DAX Index on October 18, 2024 and sell it today you would earn a total of 32,831 from holding DAX Index or generate 1.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.44% |
| Values | Daily Returns |
DAX Index vs. Halma plc
Performance |
| Timeline |
DAX Index and Halma Plc Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Halma plc
Pair trading matchups for Halma Plc
Pair Trading with DAX Index and Halma Plc
The main advantage of trading using opposite DAX Index and Halma Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Halma Plc 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 Halma Plc will offset losses from the drop in Halma Plc's long position.| DAX Index vs. CyberArk Software | DAX Index vs. Lendlease Group | DAX Index vs. PSI Software AG | DAX Index vs. Take Two Interactive Software |
| Halma Plc vs. GigaMedia | Halma Plc vs. PENN NATL GAMING | Halma Plc vs. Hochschild Mining plc | Halma Plc vs. International Game Technology |
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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