Correlation Between ARDAGH METAL and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both ARDAGH METAL 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 ARDAGH METAL and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ARDAGH METAL PACDL 0001 and Harmony Gold Mining, you can compare the effects of market volatilities on ARDAGH METAL 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 ARDAGH METAL with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of ARDAGH METAL and Harmony Gold.
Diversification Opportunities for ARDAGH METAL and Harmony Gold
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ARDAGH and Harmony is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding ARDAGH METAL PACDL 0001 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 ARDAGH METAL 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 ARDAGH METAL PACDL 0001 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 ARDAGH METAL i.e., ARDAGH METAL and Harmony Gold go up and down completely randomly.
Pair Corralation between ARDAGH METAL and Harmony Gold
Assuming the 90 days horizon ARDAGH METAL is expected to generate 2.32 times less return on investment than Harmony Gold. In addition to that, ARDAGH METAL is 1.02 times more volatile than Harmony Gold Mining. It trades about 0.03 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 417.00 in Harmony Gold Mining on August 31, 2024 and sell it today you would earn a total of 428.00 from holding Harmony Gold Mining or generate 102.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ARDAGH METAL PACDL 0001 vs. Harmony Gold Mining
Performance |
| Timeline |
| ARDAGH METAL PACDL |
| Harmony Gold Mining |
ARDAGH METAL and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ARDAGH METAL and Harmony Gold
The main advantage of trading using opposite ARDAGH METAL and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ARDAGH METAL 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.| ARDAGH METAL vs. KAUFMAN ET BROAD | ARDAGH METAL vs. GRIFFIN MINING LTD | ARDAGH METAL vs. Nishi Nippon Railroad Co | ARDAGH METAL vs. EVS Broadcast Equipment |
| Harmony Gold vs. ZIJIN MINH UNSPADR20 | Harmony Gold vs. Superior Plus Corp | Harmony Gold vs. NMI Holdings | 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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