Correlation Between Cimpress and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both Cimpress 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 Cimpress and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cimpress NV and Harmony Gold Mining, you can compare the effects of market volatilities on Cimpress 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 Cimpress with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cimpress and Harmony Gold.
Diversification Opportunities for Cimpress and Harmony Gold
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cimpress and Harmony is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Cimpress NV 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 Cimpress 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 Cimpress NV 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 Cimpress i.e., Cimpress and Harmony Gold go up and down completely randomly.
Pair Corralation between Cimpress and Harmony Gold
Given the investment horizon of 90 days Cimpress NV is expected to generate 0.55 times more return on investment than Harmony Gold. However, Cimpress NV is 1.83 times less risky than Harmony Gold. It trades about 0.24 of its potential returns per unit of risk. Harmony Gold Mining is currently generating about -0.22 per unit of risk. If you would invest 7,125 in Cimpress NV on September 2, 2024 and sell it today you would earn a total of 905.00 from holding Cimpress NV or generate 12.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cimpress NV vs. Harmony Gold Mining
Performance |
| Timeline |
| Cimpress NV |
| Harmony Gold Mining |
Cimpress and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cimpress and Harmony Gold
The main advantage of trading using opposite Cimpress and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cimpress 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.| Cimpress vs. Innovid Corp | Cimpress vs. Deluxe | Cimpress vs. Omnicom Group | Cimpress vs. Emerald Expositions Events |
| Harmony Gold vs. Aurion Resources | Harmony Gold vs. Rio2 Limited | Harmony Gold vs. Palamina Corp | Harmony Gold vs. Grande Portage Resources |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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