Correlation Between China Tontine and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both China Tontine 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 China Tontine and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Tontine Wines and Harmony Gold Mining, you can compare the effects of market volatilities on China Tontine 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 China Tontine with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Tontine and Harmony Gold.
Diversification Opportunities for China Tontine and Harmony Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Harmony is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Tontine Wines 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 China Tontine 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 China Tontine Wines 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 China Tontine i.e., China Tontine and Harmony Gold go up and down completely randomly.
Pair Corralation between China Tontine and Harmony Gold
If you would invest 950.00 in Harmony Gold Mining on November 3, 2024 and sell it today you would lose (1.00) from holding Harmony Gold Mining or give up 0.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
China Tontine Wines vs. Harmony Gold Mining
Performance |
| Timeline |
| China Tontine Wines |
| Harmony Gold Mining |
China Tontine and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Tontine and Harmony Gold
The main advantage of trading using opposite China Tontine and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Tontine 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.| China Tontine vs. Keurig Dr Pepper | China Tontine vs. WK Kellogg Co | China Tontine vs. Village Super Market | China Tontine vs. FitLife Brands, Common |
| Harmony Gold vs. Bridgford Foods | Harmony Gold vs. Wabash National | Harmony Gold vs. Brunswick | Harmony Gold vs. Modine Manufacturing |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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