Correlation Between GEELY AUTOMOBILE and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both GEELY AUTOMOBILE 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 GEELY AUTOMOBILE and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GEELY AUTOMOBILE and Harmony Gold Mining, you can compare the effects of market volatilities on GEELY AUTOMOBILE 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 GEELY AUTOMOBILE with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of GEELY AUTOMOBILE and Harmony Gold.
Diversification Opportunities for GEELY AUTOMOBILE and Harmony Gold
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GEELY and Harmony is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding GEELY AUTOMOBILE 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 GEELY AUTOMOBILE 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 GEELY AUTOMOBILE 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 GEELY AUTOMOBILE i.e., GEELY AUTOMOBILE and Harmony Gold go up and down completely randomly.
Pair Corralation between GEELY AUTOMOBILE and Harmony Gold
Assuming the 90 days trading horizon GEELY AUTOMOBILE is expected to generate 0.82 times more return on investment than Harmony Gold. However, GEELY AUTOMOBILE is 1.22 times less risky than Harmony Gold. It trades about 0.08 of its potential returns per unit of risk. Harmony Gold Mining is currently generating about -0.17 per unit of risk. If you would invest 161.00 in GEELY AUTOMOBILE on September 1, 2024 and sell it today you would earn a total of 7.00 from holding GEELY AUTOMOBILE or generate 4.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GEELY AUTOMOBILE vs. Harmony Gold Mining
Performance |
| Timeline |
| GEELY AUTOMOBILE |
| Harmony Gold Mining |
GEELY AUTOMOBILE and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GEELY AUTOMOBILE and Harmony Gold
The main advantage of trading using opposite GEELY AUTOMOBILE and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GEELY AUTOMOBILE 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.| GEELY AUTOMOBILE vs. SIVERS SEMICONDUCTORS AB | GEELY AUTOMOBILE vs. Darden Restaurants | GEELY AUTOMOBILE vs. Reliance Steel Aluminum | GEELY AUTOMOBILE vs. Q2M Managementberatung AG |
| Harmony Gold vs. ZIJIN MINH UNSPADR20 | Harmony Gold vs. Superior Plus Corp | Harmony Gold vs. NMI Holdings | Harmony Gold vs. Origin Agritech |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |