Correlation Between DAX Index and HNI
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By analyzing existing cross correlation between DAX Index and HNI Corporation, you can compare the effects of market volatilities on DAX Index and HNI 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 HNI. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and HNI.
Diversification Opportunities for DAX Index and HNI
Very weak diversification
The 3 months correlation between DAX and HNI is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and HNI Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HNI Corporation 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 HNI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HNI Corporation has no effect on the direction of DAX Index i.e., DAX Index and HNI go up and down completely randomly.
Pair Corralation between DAX Index and HNI
Assuming the 90 days trading horizon DAX Index is expected to under-perform the HNI. But the index apears to be less risky and, when comparing its historical volatility, DAX Index is 2.25 times less risky than HNI. The index trades about -0.05 of its potential returns per unit of risk. The HNI Corporation is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 4,749 in HNI Corporation on August 27, 2024 and sell it today you would earn a total of 401.00 from holding HNI Corporation or generate 8.44% 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. HNI Corp.
Performance |
| Timeline |
DAX Index and HNI Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
HNI Corporation
Pair trading matchups for HNI
Pair Trading with DAX Index and HNI
The main advantage of trading using opposite DAX Index and HNI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, HNI 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 HNI will offset losses from the drop in HNI's long position.| DAX Index vs. QUEEN S ROAD | DAX Index vs. TITANIUM TRANSPORTGROUP | DAX Index vs. COPLAND ROAD CAPITAL | DAX Index vs. Broadcom |
| HNI vs. UNIVMUSIC GRPADR050 | HNI vs. Jacquet Metal Service | HNI vs. Commercial Vehicle Group | HNI vs. Zijin Mining Group |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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