Correlation Between DAX Index and H M
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By analyzing existing cross correlation between DAX Index and H M Hennes, you can compare the effects of market volatilities on DAX Index and H M 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 H M. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and H M.
Diversification Opportunities for DAX Index and H M
Very weak diversification
The 3 months correlation between DAX and HMSB is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and H M Hennes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on H M Hennes 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 H M. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of H M Hennes has no effect on the direction of DAX Index i.e., DAX Index and H M go up and down completely randomly.
Pair Corralation between DAX Index and H M
Assuming the 90 days trading horizon DAX Index is expected to under-perform the H M. But the index apears to be less risky and, when comparing its historical volatility, DAX Index is 5.52 times less risky than H M. The index trades about -0.05 of its potential returns per unit of risk. The H M Hennes is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,189 in H M Hennes on August 28, 2024 and sell it today you would earn a total of 162.00 from holding H M Hennes or generate 13.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. H M Hennes
Performance |
| Timeline |
DAX Index and H M Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
H M Hennes
Pair trading matchups for H M
Pair Trading with DAX Index and H M
The main advantage of trading using opposite DAX Index and H M positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, H M 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 H M will offset losses from the drop in H M's long position.| DAX Index vs. ELMOS SEMICONDUCTOR | DAX Index vs. ALTAIR RES INC | DAX Index vs. Fair Isaac Corp | DAX Index vs. Taiwan Semiconductor Manufacturing |
| H M vs. NorAm Drilling AS | H M vs. Postal Savings Bank | H M vs. PennantPark Investment | H M vs. Geely Automobile Holdings |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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