Correlation Between GALENA MINING and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both GALENA 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 GALENA 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 GALENA MINING LTD and Harmony Gold Mining, you can compare the effects of market volatilities on GALENA 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 GALENA MINING with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and Harmony Gold.
Diversification Opportunities for GALENA MINING and Harmony Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and Harmony is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD 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 GALENA 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 GALENA MINING LTD 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 GALENA MINING i.e., GALENA MINING and Harmony Gold go up and down completely randomly.
Pair Corralation between GALENA MINING and Harmony Gold
If you would invest 3.05 in GALENA MINING LTD on August 24, 2024 and sell it today you would earn a total of 0.00 from holding GALENA MINING LTD or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
GALENA MINING LTD vs. Harmony Gold Mining
Performance |
| Timeline |
| GALENA MINING LTD |
| Harmony Gold Mining |
GALENA MINING and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and Harmony Gold
The main advantage of trading using opposite GALENA MINING and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA 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.| GALENA MINING vs. Mineral Resources Limited | GALENA MINING vs. NEXA RESOURCES SA | GALENA MINING vs. ADRIATIC METALS LS 013355 | GALENA MINING vs. Superior Plus Corp |
| Harmony Gold vs. Franco Nevada | Harmony Gold vs. Agnico Eagle Mines | Harmony Gold vs. Superior Plus Corp | Harmony Gold vs. NMI Holdings |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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