Correlation Between Yuexiu Transport and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport 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 Yuexiu Transport and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yuexiu Transport Infrastructure and Harmony Gold Mining, you can compare the effects of market volatilities on Yuexiu Transport 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 Yuexiu Transport with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and Harmony Gold.
Diversification Opportunities for Yuexiu Transport and Harmony Gold
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Yuexiu and Harmony is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur 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 Yuexiu Transport 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 Yuexiu Transport Infrastructure 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 Yuexiu Transport i.e., Yuexiu Transport and Harmony Gold go up and down completely randomly.
Pair Corralation between Yuexiu Transport and Harmony Gold
Assuming the 90 days horizon Yuexiu Transport Infrastructure is expected to generate 1.27 times more return on investment than Harmony Gold. However, Yuexiu Transport is 1.27 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 -0.21 per unit of risk. If you would invest 45.00 in Yuexiu Transport Infrastructure on August 30, 2024 and sell it today you would earn a total of 13.00 from holding Yuexiu Transport Infrastructure or generate 28.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuexiu Transport Infrastructur vs. Harmony Gold Mining
Performance |
| Timeline |
| Yuexiu Transport Inf |
| Harmony Gold Mining |
Yuexiu Transport and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuexiu Transport and Harmony Gold
The main advantage of trading using opposite Yuexiu Transport and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport 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.| Yuexiu Transport vs. Zhejiang Expressway Co | Yuexiu Transport vs. Jiangsu Expressway Co | Yuexiu Transport vs. Jiangsu Expressway | Yuexiu Transport vs. Verra Mobility Corp |
| Harmony Gold vs. SNDL Inc | Harmony Gold vs. Tyson Foods | Harmony Gold vs. Century Aluminum | Harmony Gold vs. Olympic Steel |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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