Correlation Between Banco Macro and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both Banco Macro 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 Banco Macro and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banco Macro SA and Harmony Gold Mining, you can compare the effects of market volatilities on Banco Macro 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 Banco Macro with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Macro and Harmony Gold.
Diversification Opportunities for Banco Macro and Harmony Gold
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Banco and Harmony is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Banco Macro SA 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 Banco Macro 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 Banco Macro SA 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 Banco Macro i.e., Banco Macro and Harmony Gold go up and down completely randomly.
Pair Corralation between Banco Macro and Harmony Gold
Assuming the 90 days trading horizon Banco Macro SA is expected to generate 1.13 times more return on investment than Harmony Gold. However, Banco Macro is 1.13 times more volatile than Harmony Gold Mining. It trades about 0.13 of its potential returns per unit of risk. Harmony Gold Mining is currently generating about 0.05 per unit of risk. If you would invest 789,000 in Banco Macro SA on November 2, 2024 and sell it today you would earn a total of 421,000 from holding Banco Macro SA or generate 53.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banco Macro SA vs. Harmony Gold Mining
Performance |
| Timeline |
| Banco Macro SA |
| Harmony Gold Mining |
Banco Macro and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Macro and Harmony Gold
The main advantage of trading using opposite Banco Macro and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Macro 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.| Banco Macro vs. Banco Santander Ro | Banco Macro vs. Banco Patagonia | Banco Macro vs. Grupo Supervielle SA | Banco Macro vs. Banco Hipotecario SA |
| Harmony Gold vs. Telecom Argentina | Harmony Gold vs. Transportadora de Gas | Harmony Gold vs. Agrometal SAI |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |