Correlation Between Harmony Gold and 5TH PLANET
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and 5TH PLANET 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 5TH PLANET 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 5TH PLANET GAMES, you can compare the effects of market volatilities on Harmony Gold and 5TH PLANET 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 5TH PLANET. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and 5TH PLANET.
Diversification Opportunities for Harmony Gold and 5TH PLANET
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Harmony and 5TH is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and 5TH PLANET GAMES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 5TH PLANET GAMES 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 5TH PLANET. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 5TH PLANET GAMES has no effect on the direction of Harmony Gold i.e., Harmony Gold and 5TH PLANET go up and down completely randomly.
Pair Corralation between Harmony Gold and 5TH PLANET
Assuming the 90 days horizon Harmony Gold Mining is expected to generate 0.55 times more return on investment than 5TH PLANET. However, Harmony Gold Mining is 1.83 times less risky than 5TH PLANET. It trades about 0.07 of its potential returns per unit of risk. 5TH PLANET GAMES is currently generating about 0.0 per unit of risk. If you would invest 336.00 in Harmony Gold Mining on October 13, 2024 and sell it today you would earn a total of 529.00 from holding Harmony Gold Mining or generate 157.44% 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. 5TH PLANET GAMES
Performance |
| Timeline |
| Harmony Gold Mining |
| 5TH PLANET GAMES |
Harmony Gold and 5TH PLANET Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and 5TH PLANET
The main advantage of trading using opposite Harmony Gold and 5TH PLANET positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, 5TH PLANET 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 5TH PLANET will offset losses from the drop in 5TH PLANET's long position.| Harmony Gold vs. RETAIL FOOD GROUP | Harmony Gold vs. FRACTAL GAMING GROUP | Harmony Gold vs. Hochschild Mining plc | Harmony Gold vs. Scientific Games |
| 5TH PLANET vs. Sea Limited | 5TH PLANET vs. Electronic Arts | 5TH PLANET vs. NEXON Co | 5TH PLANET vs. NEXON Co |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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