Correlation Between Harmony Gold and MOVIE GAMES
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and MOVIE GAMES 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 MOVIE GAMES 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 MOVIE GAMES SA, you can compare the effects of market volatilities on Harmony Gold and MOVIE GAMES 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 MOVIE GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and MOVIE GAMES.
Diversification Opportunities for Harmony Gold and MOVIE GAMES
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Harmony and MOVIE is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and MOVIE GAMES SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOVIE GAMES 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 MOVIE GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOVIE GAMES SA has no effect on the direction of Harmony Gold i.e., Harmony Gold and MOVIE GAMES go up and down completely randomly.
Pair Corralation between Harmony Gold and MOVIE GAMES
Assuming the 90 days horizon Harmony Gold Mining is expected to generate 0.84 times more return on investment than MOVIE GAMES. However, Harmony Gold Mining is 1.19 times less risky than MOVIE GAMES. It trades about 0.07 of its potential returns per unit of risk. MOVIE GAMES SA is currently generating about 0.0 per unit of risk. If you would invest 341.00 in Harmony Gold Mining on October 11, 2024 and sell it today you would earn a total of 454.00 from holding Harmony Gold Mining or generate 133.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. MOVIE GAMES SA
Performance |
| Timeline |
| Harmony Gold Mining |
| MOVIE GAMES SA |
Harmony Gold and MOVIE GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and MOVIE GAMES
The main advantage of trading using opposite Harmony Gold and MOVIE GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, MOVIE GAMES 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 MOVIE GAMES will offset losses from the drop in MOVIE GAMES's long position.| Harmony Gold vs. TRADELINK ELECTRON | Harmony Gold vs. FLOW TRADERS LTD | Harmony Gold vs. H2O Retailing | Harmony Gold vs. Canon Marketing Japan |
| MOVIE GAMES vs. Kingdee International Software | MOVIE GAMES vs. Uber Technologies | MOVIE GAMES vs. Harmony Gold Mining | MOVIE GAMES vs. SOFI TECHNOLOGIES |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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