Correlation Between Canada Goose and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both Canada Goose 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 Canada Goose and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canada Goose Holdings and Harmony Gold Mining, you can compare the effects of market volatilities on Canada Goose 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 Canada Goose with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canada Goose and Harmony Gold.
Diversification Opportunities for Canada Goose and Harmony Gold
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Canada and Harmony is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Canada Goose 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 Canada Goose 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 Canada Goose 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 Canada Goose i.e., Canada Goose and Harmony Gold go up and down completely randomly.
Pair Corralation between Canada Goose and Harmony Gold
Given the investment horizon of 90 days Canada Goose is expected to generate 33.16 times less return on investment than Harmony Gold. But when comparing it to its historical volatility, Canada Goose Holdings is 1.22 times less risky than Harmony Gold. It trades about 0.0 of its potential returns per unit of risk. Harmony Gold Mining is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 636.00 in Harmony Gold Mining on September 14, 2024 and sell it today you would earn a total of 314.00 from holding Harmony Gold Mining or generate 49.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 66.17% |
| Values | Daily Returns |
Canada Goose Holdings vs. Harmony Gold Mining
Performance |
| Timeline |
| Canada Goose Holdings |
| Harmony Gold Mining |
Canada Goose and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canada Goose and Harmony Gold
The main advantage of trading using opposite Canada Goose and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canada Goose 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.| Canada Goose vs. Digital Brands Group | Canada Goose vs. Data Storage | Canada Goose vs. Auddia Inc | Canada Goose vs. DatChat Series A |
| Harmony Gold vs. Revival Gold | Harmony Gold vs. Galiano Gold | Harmony Gold vs. US Gold Corp | Harmony Gold vs. HUMANA INC |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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