Correlation Between G III and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both G III 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 G III and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G III APPAREL GROUP and Harmony Gold Mining, you can compare the effects of market volatilities on G III 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 G III with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of G III and Harmony Gold.
Diversification Opportunities for G III and Harmony Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GI4 and Harmony is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding G III APPAREL GROUP 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 G III 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 G III APPAREL GROUP 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 G III i.e., G III and Harmony Gold go up and down completely randomly.
Pair Corralation between G III and Harmony Gold
Assuming the 90 days trading horizon G III APPAREL GROUP is expected to generate 1.01 times more return on investment than Harmony Gold. However, G III is 1.01 times more volatile than Harmony Gold Mining. It trades about 0.22 of its potential returns per unit of risk. Harmony Gold Mining is currently generating about 0.01 per unit of risk. If you would invest 2,920 in G III APPAREL GROUP on September 14, 2024 and sell it today you would earn a total of 400.00 from holding G III APPAREL GROUP or generate 13.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
G III APPAREL GROUP vs. Harmony Gold Mining
Performance |
| Timeline |
| G III APPAREL |
| Harmony Gold Mining |
G III and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G III and Harmony Gold
The main advantage of trading using opposite G III and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G III 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.| G III vs. Harmony Gold Mining | G III vs. LANDSEA HOMES P | G III vs. Haverty Furniture Companies | G III vs. ADRIATIC METALS LS 013355 |
| Harmony Gold vs. Franco Nevada | Harmony Gold vs. Superior Plus Corp | Harmony Gold vs. SIVERS SEMICONDUCTORS AB | Harmony Gold vs. Norsk Hydro ASA |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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