Magnetic position sensing is used in many applications, especially in environments where the sensor is subjected to vibrations, temperature variations, or high humidity. The Hall effect position sensors, due to their simplicity and versatility, are elegant solutions to many application requirements, although the disadvantage are a maximum operating temperature of about 175°C, airgap operation limited to no greater than about 2.5mm and sensitivity to external pressure acting on the sensor package [1]. The need for sensors is growing, for example, in automotive applications, where, in engine control applications, the number of sensors used will increase from about ten in 1995, to more than thirty in 2010 [2]. Magnetic position sensing is based on the measurement of the magnetization pattern of a di-pole, or multi-pole, magnetic ring using a Hall sensor, which shows the variation of the magnetic field density along the circumference of the ring. The ideal magnetic behavior of the permanent magnet ring has a sinusoidal hall-sensor output, which makes it suitable for sensing applications. However, practical measurements show that the sinusoidal behavior sometimes occurs with errors. This paper describes the investigation of these errors by means of mismatch in the magnetization pattern of the di-pole permanent magnet (PM)-ring. The PM-ring yields that the developed magnetic flux is purely sinusoidal, where the geometrical dimensions of the PM-ring influence the magnitude Hall-sensor output voltage level. A deviation in the sinusoidal behavior is influenced by a non-ideal PM-ring by means of varying magnetic flux density magnitude and orientation.