Correlation Between Fidelis Insurance and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both Fidelis Insurance 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 Fidelis Insurance and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelis Insurance Holdings and Harmony Gold Mining, you can compare the effects of market volatilities on Fidelis Insurance 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 Fidelis Insurance with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelis Insurance and Harmony Gold.
Diversification Opportunities for Fidelis Insurance and Harmony Gold
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fidelis and Harmony is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Fidelis Insurance Holdings 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 Fidelis Insurance 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 Fidelis Insurance Holdings 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 Fidelis Insurance i.e., Fidelis Insurance and Harmony Gold go up and down completely randomly.
Pair Corralation between Fidelis Insurance and Harmony Gold
Given the investment horizon of 90 days Fidelis Insurance Holdings is expected to generate 0.48 times more return on investment than Harmony Gold. However, Fidelis Insurance Holdings is 2.08 times less risky than Harmony Gold. It trades about 0.37 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 1,698 in Fidelis Insurance Holdings on September 5, 2024 and sell it today you would earn a total of 326.00 from holding Fidelis Insurance Holdings or generate 19.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Fidelis Insurance Holdings vs. Harmony Gold Mining
Performance |
| Timeline |
| Fidelis Insurance |
| Harmony Gold Mining |
Fidelis Insurance and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelis Insurance and Harmony Gold
The main advantage of trading using opposite Fidelis Insurance and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelis Insurance 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.| Fidelis Insurance vs. Harmony Gold Mining | Fidelis Insurance vs. Aegon NV ADR | Fidelis Insurance vs. Sun Life Financial | Fidelis Insurance vs. SEI Investments |
| Harmony Gold vs. Gentex | Harmony Gold vs. Wabash National | Harmony Gold vs. Adient PLC | Harmony Gold vs. RBC Bearings Incorporated |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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