Correlation Between DAX Index and Hana Microelectronics
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By analyzing existing cross correlation between DAX Index and Hana Microelectronics Public, you can compare the effects of market volatilities on DAX Index and Hana Microelectronics 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 Hana Microelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Hana Microelectronics.
Diversification Opportunities for DAX Index and Hana Microelectronics
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between DAX and Hana is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Hana Microelectronics Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hana Microelectronics 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 Hana Microelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hana Microelectronics has no effect on the direction of DAX Index i.e., DAX Index and Hana Microelectronics go up and down completely randomly.
Pair Corralation between DAX Index and Hana Microelectronics
Assuming the 90 days trading horizon DAX Index is expected to generate 4.57 times less return on investment than Hana Microelectronics. But when comparing it to its historical volatility, DAX Index is 13.44 times less risky than Hana Microelectronics. It trades about 0.25 of its potential returns per unit of risk. Hana Microelectronics Public is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 64.00 in Hana Microelectronics Public on September 12, 2024 and sell it today you would earn a total of 7.00 from holding Hana Microelectronics Public or generate 10.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Hana Microelectronics Public
Performance |
| Timeline |
DAX Index and Hana Microelectronics Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Hana Microelectronics Public
Pair trading matchups for Hana Microelectronics
Pair Trading with DAX Index and Hana Microelectronics
The main advantage of trading using opposite DAX Index and Hana Microelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Hana Microelectronics 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 Hana Microelectronics will offset losses from the drop in Hana Microelectronics' long position.| DAX Index vs. Arrow Electronics | DAX Index vs. CANON MARKETING JP | DAX Index vs. The Trade Desk | DAX Index vs. METHODE ELECTRONICS |
| Hana Microelectronics vs. Benchmark Electronics | Hana Microelectronics vs. Meiko Electronics Co | Hana Microelectronics vs. Superior Plus Corp | Hana Microelectronics vs. SIVERS SEMICONDUCTORS AB |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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