Correlation Between Edesa Holding and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both Edesa 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 Edesa 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 Edesa Holding SA and Harmony Gold Mining, you can compare the effects of market volatilities on Edesa 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 Edesa Holding with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edesa Holding and Harmony Gold.
Diversification Opportunities for Edesa Holding and Harmony Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Edesa and Harmony is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Edesa Holding SA 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 Edesa 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 Edesa Holding SA 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 Edesa Holding i.e., Edesa Holding and Harmony Gold go up and down completely randomly.
Pair Corralation between Edesa Holding and Harmony Gold
If you would invest 49,000 in Edesa Holding SA on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Edesa Holding SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Edesa Holding SA vs. Harmony Gold Mining
Performance |
| Timeline |
| Edesa Holding SA |
| Harmony Gold Mining |
Edesa Holding and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Edesa Holding and Harmony Gold
The main advantage of trading using opposite Edesa Holding and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Edesa 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.| Edesa Holding vs. Enel Generacion Costanera | Edesa Holding vs. Vista Energy, SAB | Edesa Holding vs. United States Steel | Edesa Holding vs. Pfizer Inc |
| Harmony Gold vs. Edesa Holding SA | Harmony Gold vs. Vista Energy, SAB | Harmony Gold vs. United States Steel | Harmony Gold vs. Pfizer 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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