Correlation Between DAX Index and Haleon PLC
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By analyzing existing cross correlation between DAX Index and Haleon PLC, you can compare the effects of market volatilities on DAX Index and Haleon 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 Haleon PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Haleon PLC.
Diversification Opportunities for DAX Index and Haleon PLC
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between DAX and Haleon is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Haleon PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haleon 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 Haleon PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haleon PLC has no effect on the direction of DAX Index i.e., DAX Index and Haleon PLC go up and down completely randomly.
Pair Corralation between DAX Index and Haleon PLC
Assuming the 90 days trading horizon DAX Index is expected to generate 0.82 times more return on investment than Haleon PLC. However, DAX Index is 1.23 times less risky than Haleon PLC. It trades about 0.14 of its potential returns per unit of risk. Haleon PLC is currently generating about 0.01 per unit of risk. If you would invest 1,907,754 in DAX Index on September 1, 2024 and sell it today you would earn a total of 54,891 from holding DAX Index or generate 2.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
DAX Index vs. Haleon PLC
Performance |
| Timeline |
DAX Index and Haleon PLC Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Haleon PLC
Pair trading matchups for Haleon PLC
Pair Trading with DAX Index and Haleon PLC
The main advantage of trading using opposite DAX Index and Haleon PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Haleon 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 Haleon PLC will offset losses from the drop in Haleon PLC's long position.| DAX Index vs. BE Semiconductor Industries | DAX Index vs. REGAL ASIAN INVESTMENTS | DAX Index vs. SEI INVESTMENTS | DAX Index vs. National Beverage Corp |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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