Correlation Between Harmony Gold and Axway Software
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Axway Software 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 Harmony Gold and Axway Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harmony Gold Mining and Axway Software SA, you can compare the effects of market volatilities on Harmony Gold and Axway Software 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 Harmony Gold with a short position of Axway Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Axway Software.
Diversification Opportunities for Harmony Gold and Axway Software
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Harmony and Axway is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Axway Software SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axway Software SA and Harmony Gold 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 Harmony Gold Mining are associated (or correlated) with Axway Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axway Software SA has no effect on the direction of Harmony Gold i.e., Harmony Gold and Axway Software go up and down completely randomly.
Pair Corralation between Harmony Gold and Axway Software
Assuming the 90 days horizon Harmony Gold Mining is expected to generate 1.95 times more return on investment than Axway Software. However, Harmony Gold is 1.95 times more volatile than Axway Software SA. It trades about 0.08 of its potential returns per unit of risk. Axway Software SA is currently generating about 0.03 per unit of risk. If you would invest 319.00 in Harmony Gold Mining on October 30, 2024 and sell it today you would earn a total of 671.00 from holding Harmony Gold Mining or generate 210.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. Axway Software SA
Performance |
| Timeline |
| Harmony Gold Mining |
| Axway Software SA |
Harmony Gold and Axway Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Axway Software
The main advantage of trading using opposite Harmony Gold and Axway Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Axway Software 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 Axway Software will offset losses from the drop in Axway Software's long position.| Harmony Gold vs. ZIJIN MINH UNSPADR20 | Harmony Gold vs. Newmont | Harmony Gold vs. Superior Plus Corp | Harmony Gold vs. Origin Agritech |
| Axway Software vs. TOMBADOR IRON LTD | Axway Software vs. CHAMPION IRON | Axway Software vs. STRAYER EDUCATION | Axway Software vs. IDP EDUCATION LTD |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |