Correlation Between DAX Index and HNB Finance
Specify exactly 2 symbols:
By analyzing existing cross correlation between DAX Index and HNB Finance, you can compare the effects of market volatilities on DAX Index and HNB Finance 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 HNB Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and HNB Finance.
Diversification Opportunities for DAX Index and HNB Finance
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DAX and HNB is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and HNB Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HNB Finance 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 HNB Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HNB Finance has no effect on the direction of DAX Index i.e., DAX Index and HNB Finance go up and down completely randomly.
Pair Corralation between DAX Index and HNB Finance
Assuming the 90 days trading horizon DAX Index is expected to generate 0.17 times more return on investment than HNB Finance. However, DAX Index is 5.95 times less risky than HNB Finance. It trades about 0.1 of its potential returns per unit of risk. HNB Finance is currently generating about 0.0 per unit of risk. If you would invest 1,899,663 in DAX Index on September 24, 2024 and sell it today you would earn a total of 88,812 from holding DAX Index or generate 4.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 93.85% |
Values | Daily Returns |
DAX Index vs. HNB Finance
Performance |
Timeline |
DAX Index and HNB Finance Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
HNB Finance
Pair trading matchups for HNB Finance
Pair Trading with DAX Index and HNB Finance
The main advantage of trading using opposite DAX Index and HNB Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, HNB Finance 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 HNB Finance will offset losses from the drop in HNB Finance's long position.DAX Index vs. Seven West Media | DAX Index vs. TERADATA | DAX Index vs. DICKER DATA LTD | DAX Index vs. Datang International Power |
HNB Finance vs. Keells Food Products | HNB Finance vs. Peoples Insurance PLC | HNB Finance vs. Pan Asia Banking | HNB Finance vs. Union Bank |
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.
Other Complementary Tools
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Bonds Directory Find actively traded corporate debentures issued by US companies |