Correlation Between ANGI Homeservices and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both ANGI Homeservices and Harmony Gold at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ANGI Homeservices and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANGI Homeservices and Harmony Gold Mining, you can compare the effects of market volatilities on ANGI Homeservices and Harmony Gold 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 ANGI Homeservices with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGI Homeservices and Harmony Gold.
Diversification Opportunities for ANGI Homeservices and Harmony Gold
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ANGI and Harmony is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding ANGI Homeservices and Harmony Gold Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harmony Gold Mining and ANGI Homeservices 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 ANGI Homeservices are associated (or correlated) with Harmony Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harmony Gold Mining has no effect on the direction of ANGI Homeservices i.e., ANGI Homeservices and Harmony Gold go up and down completely randomly.
Pair Corralation between ANGI Homeservices and Harmony Gold
Assuming the 90 days horizon ANGI Homeservices is expected to under-perform the Harmony Gold. In addition to that, ANGI Homeservices is 1.25 times more volatile than Harmony Gold Mining. It trades about -0.13 of its total potential returns per unit of risk. Harmony Gold Mining is currently generating about 0.07 per unit of volatility. If you would invest 995.00 in Harmony Gold Mining on November 27, 2024 and sell it today you would earn a total of 35.00 from holding Harmony Gold Mining or generate 3.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANGI Homeservices vs. Harmony Gold Mining
Performance |
| Timeline |
| ANGI Homeservices |
| Harmony Gold Mining |
ANGI Homeservices and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANGI Homeservices and Harmony Gold
The main advantage of trading using opposite ANGI Homeservices and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGI Homeservices position performs unexpectedly, Harmony Gold 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 Harmony Gold will offset losses from the drop in Harmony Gold's long position.| ANGI Homeservices vs. DELTA AIR LINES | ANGI Homeservices vs. Alaska Air Group | ANGI Homeservices vs. Wizz Air Holdings | ANGI Homeservices vs. SILICON LABORATOR |
| Harmony Gold vs. AEON METALS LTD | Harmony Gold vs. Jacquet Metal Service | Harmony Gold vs. Stag Industrial | Harmony Gold vs. SIERRA METALS |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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