Correlation Between DAX Index and Halliburton
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By analyzing existing cross correlation between DAX Index and Halliburton, you can compare the effects of market volatilities on DAX Index and Halliburton 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 Halliburton. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Halliburton.
Diversification Opportunities for DAX Index and Halliburton
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between DAX and Halliburton is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Halliburton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halliburton 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 Halliburton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halliburton has no effect on the direction of DAX Index i.e., DAX Index and Halliburton go up and down completely randomly.
Pair Corralation between DAX Index and Halliburton
Assuming the 90 days trading horizon DAX Index is expected to generate 0.37 times more return on investment than Halliburton. However, DAX Index is 2.73 times less risky than Halliburton. It trades about 0.08 of its potential returns per unit of risk. Halliburton is currently generating about 0.0 per unit of risk. If you would invest 1,426,456 in DAX Index on August 29, 2024 and sell it today you would earn a total of 503,142 from holding DAX Index or generate 35.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Halliburton
Performance |
| Timeline |
DAX Index and Halliburton Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Halliburton
Pair trading matchups for Halliburton
Pair Trading with DAX Index and Halliburton
The main advantage of trading using opposite DAX Index and Halliburton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Halliburton 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 Halliburton will offset losses from the drop in Halliburton's long position.| DAX Index vs. Gladstone Investment | DAX Index vs. REINET INVESTMENTS SCA | DAX Index vs. CarsalesCom | DAX Index vs. MARKET VECTR RETAIL |
| Halliburton vs. National Bank Holdings | Halliburton vs. UNIVMUSIC GRPADR050 | Halliburton vs. Suntory Beverage Food | Halliburton vs. SOFTBANK P ADR |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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