Correlation Between Eat Beyond and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both Eat Beyond 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 Eat Beyond and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eat Beyond Global and Harmony Gold Mining, you can compare the effects of market volatilities on Eat Beyond 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 Eat Beyond with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eat Beyond and Harmony Gold.
Diversification Opportunities for Eat Beyond and Harmony Gold
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eat and Harmony is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Eat Beyond Global 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 Eat Beyond 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 Eat Beyond Global 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 Eat Beyond i.e., Eat Beyond and Harmony Gold go up and down completely randomly.
Pair Corralation between Eat Beyond and Harmony Gold
Assuming the 90 days horizon Eat Beyond Global is expected to generate 3.42 times more return on investment than Harmony Gold. However, Eat Beyond is 3.42 times more volatile than Harmony Gold Mining. It trades about 0.06 of its potential returns per unit of risk. Harmony Gold Mining is currently generating about 0.1 per unit of risk. If you would invest 35.00 in Eat Beyond Global on August 24, 2024 and sell it today you would lose (31.20) from holding Eat Beyond Global or give up 89.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 65.52% |
| Values | Daily Returns |
Eat Beyond Global vs. Harmony Gold Mining
Performance |
| Timeline |
| Eat Beyond Global |
| Harmony Gold Mining |
Eat Beyond and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eat Beyond and Harmony Gold
The main advantage of trading using opposite Eat Beyond and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eat Beyond 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.| Eat Beyond vs. Elysee Development Corp | Eat Beyond vs. Azimut Holding SpA | Eat Beyond vs. Ameritrans Capital Corp | Eat Beyond vs. Aimia Inc |
| Harmony Gold vs. NH Foods Ltd | Harmony Gold vs. Relx PLC ADR | Harmony Gold vs. Ihuman Inc | Harmony Gold vs. Delta Air Lines |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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