Correlation Between Carnegie Clean and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both Carnegie Clean 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 Carnegie Clean and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carnegie Clean Energy and Harmony Gold Mining, you can compare the effects of market volatilities on Carnegie Clean 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 Carnegie Clean with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carnegie Clean and Harmony Gold.
Diversification Opportunities for Carnegie Clean and Harmony Gold
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Carnegie and Harmony is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Carnegie Clean Energy 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 Carnegie Clean 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 Carnegie Clean Energy 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 Carnegie Clean i.e., Carnegie Clean and Harmony Gold go up and down completely randomly.
Pair Corralation between Carnegie Clean and Harmony Gold
Assuming the 90 days trading horizon Carnegie Clean is expected to generate 2.55 times less return on investment than Harmony Gold. In addition to that, Carnegie Clean is 2.21 times more volatile than Harmony Gold Mining. It trades about 0.01 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 336.00 in Harmony Gold Mining on October 13, 2024 and sell it today you would earn a total of 529.00 from holding Harmony Gold Mining or generate 157.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carnegie Clean Energy vs. Harmony Gold Mining
Performance |
| Timeline |
| Carnegie Clean Energy |
| Harmony Gold Mining |
Carnegie Clean and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carnegie Clean and Harmony Gold
The main advantage of trading using opposite Carnegie Clean and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carnegie Clean 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.| Carnegie Clean vs. KIMBALL ELECTRONICS | Carnegie Clean vs. Direct Line Insurance | Carnegie Clean vs. STMICROELECTRONICS | Carnegie Clean vs. The Hanover Insurance |
| Harmony Gold vs. RETAIL FOOD GROUP | Harmony Gold vs. FRACTAL GAMING GROUP | Harmony Gold vs. Hochschild Mining plc | Harmony Gold vs. Scientific Games |
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 CEOs Directory module to screen CEOs from public companies around the world.
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