Correlation Between Apogee Enterprises and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both Apogee Enterprises 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 Apogee Enterprises and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apogee Enterprises and Harmony Gold Mining, you can compare the effects of market volatilities on Apogee Enterprises 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 Apogee Enterprises with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apogee Enterprises and Harmony Gold.
Diversification Opportunities for Apogee Enterprises and Harmony Gold
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Apogee and Harmony is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Enterprises 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 Apogee Enterprises 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 Apogee Enterprises 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 Apogee Enterprises i.e., Apogee Enterprises and Harmony Gold go up and down completely randomly.
Pair Corralation between Apogee Enterprises and Harmony Gold
Given the investment horizon of 90 days Apogee Enterprises is expected to generate 1.81 times less return on investment than Harmony Gold. But when comparing it to its historical volatility, Apogee Enterprises is 1.62 times less risky than Harmony Gold. It trades about 0.07 of its potential returns per unit of risk. Harmony Gold Mining is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 342.00 in Harmony Gold Mining on August 27, 2024 and sell it today you would earn a total of 621.00 from holding Harmony Gold Mining or generate 181.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apogee Enterprises vs. Harmony Gold Mining
Performance |
| Timeline |
| Apogee Enterprises |
| Harmony Gold Mining |
Apogee Enterprises and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apogee Enterprises and Harmony Gold
The main advantage of trading using opposite Apogee Enterprises and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apogee Enterprises 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.| Apogee Enterprises vs. Quanex Building Products | Apogee Enterprises vs. Janus International Group | Apogee Enterprises vs. Interface | Apogee Enterprises vs. Azek Company |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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