Correlation Between JIAHUA STORES and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both JIAHUA STORES 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 JIAHUA STORES and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JIAHUA STORES and Harmony Gold Mining, you can compare the effects of market volatilities on JIAHUA STORES 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 JIAHUA STORES with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIAHUA STORES and Harmony Gold.
Diversification Opportunities for JIAHUA STORES and Harmony Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JIAHUA and Harmony is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JIAHUA STORES 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 JIAHUA STORES 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 JIAHUA STORES 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 JIAHUA STORES i.e., JIAHUA STORES and Harmony Gold go up and down completely randomly.
Pair Corralation between JIAHUA STORES and Harmony Gold
If you would invest 605.00 in Harmony Gold Mining on September 1, 2024 and sell it today you would earn a total of 240.00 from holding Harmony Gold Mining or generate 39.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JIAHUA STORES vs. Harmony Gold Mining
Performance |
| Timeline |
| JIAHUA STORES |
| Harmony Gold Mining |
JIAHUA STORES and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JIAHUA STORES and Harmony Gold
The main advantage of trading using opposite JIAHUA STORES and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JIAHUA STORES 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.| JIAHUA STORES vs. SIVERS SEMICONDUCTORS AB | JIAHUA STORES vs. Darden Restaurants | JIAHUA STORES vs. Reliance Steel Aluminum | JIAHUA STORES vs. Q2M Managementberatung AG |
| Harmony Gold vs. ZIJIN MINH UNSPADR20 | Harmony Gold vs. Superior Plus Corp | Harmony Gold vs. NMI Holdings | Harmony Gold vs. Origin Agritech |
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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