Correlation Between GREENX METALS and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both GREENX METALS 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 GREENX METALS and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GREENX METALS LTD and Harmony Gold Mining, you can compare the effects of market volatilities on GREENX METALS 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 GREENX METALS with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and Harmony Gold.
Diversification Opportunities for GREENX METALS and Harmony Gold
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GREENX and Harmony is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD 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 GREENX METALS 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 GREENX METALS LTD 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 GREENX METALS i.e., GREENX METALS and Harmony Gold go up and down completely randomly.
Pair Corralation between GREENX METALS and Harmony Gold
Assuming the 90 days trading horizon GREENX METALS LTD is expected to under-perform the Harmony Gold. In addition to that, GREENX METALS is 1.18 times more volatile than Harmony Gold Mining. It trades about -0.17 of its total potential returns per unit of risk. Harmony Gold Mining is currently generating about -0.19 per unit of volatility. If you would invest 1,010 in Harmony Gold Mining on August 29, 2024 and sell it today you would lose (150.00) from holding Harmony Gold Mining or give up 14.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GREENX METALS LTD vs. Harmony Gold Mining
Performance |
| Timeline |
| GREENX METALS LTD |
| Harmony Gold Mining |
GREENX METALS and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and Harmony Gold
The main advantage of trading using opposite GREENX METALS and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS 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.| GREENX METALS vs. Superior Plus Corp | GREENX METALS vs. NMI Holdings | GREENX METALS vs. SIVERS SEMICONDUCTORS AB | GREENX METALS vs. Talanx AG |
| Harmony Gold vs. Franco Nevada | Harmony Gold vs. Wheaton Precious Metals | Harmony Gold vs. Superior Plus Corp | Harmony Gold vs. NMI Holdings |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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