Correlation Between GMV Minerals and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both GMV Minerals 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 GMV Minerals and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GMV Minerals and Harmony Gold Mining, you can compare the effects of market volatilities on GMV Minerals 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 GMV Minerals with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of GMV Minerals and Harmony Gold.
Diversification Opportunities for GMV Minerals and Harmony Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GMV and Harmony is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GMV Minerals 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 GMV Minerals 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 GMV Minerals 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 GMV Minerals i.e., GMV Minerals and Harmony Gold go up and down completely randomly.
Pair Corralation between GMV Minerals and Harmony Gold
If you would invest 820.00 in Harmony Gold Mining on September 5, 2024 and sell it today you would earn a total of 98.00 from holding Harmony Gold Mining or generate 11.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.8% |
| Values | Daily Returns |
GMV Minerals vs. Harmony Gold Mining
Performance |
| Timeline |
| GMV Minerals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| Harmony Gold Mining |
GMV Minerals and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GMV Minerals and Harmony Gold
The main advantage of trading using opposite GMV Minerals and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GMV Minerals 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.| GMV Minerals vs. Antilles Gold Limited | GMV Minerals vs. Guskin Gold Corp | GMV Minerals vs. Q2 Metals Corp | GMV Minerals vs. Bluestone Resources |
| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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