Correlation Between Xiwang Special and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both Xiwang Special 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 Xiwang Special and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xiwang Special Steel and Harmony Gold Mining, you can compare the effects of market volatilities on Xiwang Special 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 Xiwang Special with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiwang Special and Harmony Gold.
Diversification Opportunities for Xiwang Special and Harmony Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xiwang and Harmony is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xiwang Special Steel 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 Xiwang Special 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 Xiwang Special Steel 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 Xiwang Special i.e., Xiwang Special and Harmony Gold go up and down completely randomly.
Pair Corralation between Xiwang Special and Harmony Gold
If you would invest 855.00 in Harmony Gold Mining on October 28, 2024 and sell it today you would earn a total of 135.00 from holding Harmony Gold Mining or generate 15.79% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 97.44% |
Values | Daily Returns |
Xiwang Special Steel vs. Harmony Gold Mining
Performance |
Timeline |
Xiwang Special Steel |
Harmony Gold Mining |
Xiwang Special and Harmony Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xiwang Special and Harmony Gold
The main advantage of trading using opposite Xiwang Special and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiwang Special 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.Xiwang Special vs. Nucor | Xiwang Special vs. ArcelorMittal SA | Xiwang Special vs. ArcelorMittal | Xiwang Special vs. Steel Dynamics |
Harmony Gold vs. ZIJIN MINH UNSPADR20 | Harmony Gold vs. Newmont | Harmony Gold vs. Superior Plus Corp | Harmony Gold vs. Origin Agritech |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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