Correlation Between DIH Holding and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both DIH Holding 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 DIH Holding and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DIH Holding US, and Harmony Gold Mining, you can compare the effects of market volatilities on DIH Holding 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 DIH Holding with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of DIH Holding and Harmony Gold.
Diversification Opportunities for DIH Holding and Harmony Gold
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between DIH and Harmony is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding DIH Holding US, 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 DIH Holding 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 DIH Holding US, 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 DIH Holding i.e., DIH Holding and Harmony Gold go up and down completely randomly.
Pair Corralation between DIH Holding and Harmony Gold
Assuming the 90 days horizon DIH Holding US, is expected to generate 6.05 times more return on investment than Harmony Gold. However, DIH Holding is 6.05 times more volatile than Harmony Gold Mining. It trades about 0.21 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 2.59 in DIH Holding US, on September 13, 2024 and sell it today you would earn a total of 2.30 from holding DIH Holding US, or generate 88.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DIH Holding US, vs. Harmony Gold Mining
Performance |
| Timeline |
| DIH Holding US, |
| Harmony Gold Mining |
DIH Holding and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DIH Holding and Harmony Gold
The main advantage of trading using opposite DIH Holding and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DIH Holding 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.| DIH Holding vs. Microbot Medical | DIH Holding vs. Pintec Technology Holdings | DIH Holding vs. BCB Bancorp | DIH Holding vs. Weibo Corp |
| Harmony Gold vs. Revival Gold | Harmony Gold vs. Galiano Gold | Harmony Gold vs. US Gold Corp | Harmony Gold vs. HUMANA INC |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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