Correlation Between Harmony Gold and Aegean Airlines
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Aegean Airlines 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 Aegean Airlines 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 Aegean Airlines SA, you can compare the effects of market volatilities on Harmony Gold and Aegean Airlines 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 Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Aegean Airlines.
Diversification Opportunities for Harmony Gold and Aegean Airlines
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Harmony and Aegean is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Aegean Airlines SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegean Airlines 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 Aegean Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aegean Airlines SA has no effect on the direction of Harmony Gold i.e., Harmony Gold and Aegean Airlines go up and down completely randomly.
Pair Corralation between Harmony Gold and Aegean Airlines
Assuming the 90 days horizon Harmony Gold Mining is expected to generate 1.26 times more return on investment than Aegean Airlines. However, Harmony Gold is 1.26 times more volatile than Aegean Airlines SA. It trades about 0.48 of its potential returns per unit of risk. Aegean Airlines SA is currently generating about 0.16 per unit of risk. If you would invest 780.00 in Harmony Gold Mining on October 29, 2024 and sell it today you would earn a total of 210.00 from holding Harmony Gold Mining or generate 26.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. Aegean Airlines SA
Performance |
| Timeline |
| Harmony Gold Mining |
| Aegean Airlines SA |
Harmony Gold and Aegean Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Aegean Airlines
The main advantage of trading using opposite Harmony Gold and Aegean Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Aegean Airlines 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 Aegean Airlines will offset losses from the drop in Aegean Airlines' long position.| Harmony Gold vs. SWISS WATER DECAFFCOFFEE | Harmony Gold vs. alstria office REIT AG | Harmony Gold vs. VITEC SOFTWARE GROUP | Harmony Gold vs. Beta Systems Software |
| Aegean Airlines vs. Coeur Mining | Aegean Airlines vs. Tyson Foods | Aegean Airlines vs. Western Copper and | Aegean Airlines vs. GRIFFIN MINING 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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