Correlation Between Monarch Mining and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both Monarch Mining 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 Monarch Mining and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monarch Mining and Harmony Gold Mining, you can compare the effects of market volatilities on Monarch Mining 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 Monarch Mining with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monarch Mining and Harmony Gold.
Diversification Opportunities for Monarch Mining and Harmony Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Monarch and Harmony is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Monarch Mining 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 Monarch Mining 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 Monarch Mining 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 Monarch Mining i.e., Monarch Mining and Harmony Gold go up and down completely randomly.
Pair Corralation between Monarch Mining and Harmony Gold
If you would invest 601.00 in Harmony Gold Mining on September 4, 2024 and sell it today you would earn a total of 317.00 from holding Harmony Gold Mining or generate 52.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 96.36% |
| Values | Daily Returns |
Monarch Mining vs. Harmony Gold Mining
Performance |
| Timeline |
| Monarch Mining |
| Harmony Gold Mining |
Monarch Mining and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monarch Mining and Harmony Gold
The main advantage of trading using opposite Monarch Mining and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monarch Mining 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.| Monarch Mining vs. Harmony Gold Mining | Monarch Mining vs. SPACE | Monarch Mining vs. T Rowe Price | Monarch Mining vs. Ampleforth |
| Harmony Gold vs. AngloGold Ashanti plc | Harmony Gold vs. Eldorado Gold Corp | Harmony Gold vs. Kinross Gold | Harmony Gold vs. Pan American Silver |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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