Correlation Between Harmony Gold and Apollo Medical
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Apollo Medical 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 Apollo Medical 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 Apollo Medical Holdings, you can compare the effects of market volatilities on Harmony Gold and Apollo Medical 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 Apollo Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Apollo Medical.
Diversification Opportunities for Harmony Gold and Apollo Medical
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Harmony and Apollo is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Apollo Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Medical Holdings 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 Apollo Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Medical Holdings has no effect on the direction of Harmony Gold i.e., Harmony Gold and Apollo Medical go up and down completely randomly.
Pair Corralation between Harmony Gold and Apollo Medical
Assuming the 90 days horizon Harmony Gold Mining is expected to generate 0.87 times more return on investment than Apollo Medical. However, Harmony Gold Mining is 1.15 times less risky than Apollo Medical. It trades about 0.58 of its potential returns per unit of risk. Apollo Medical Holdings is currently generating about 0.2 per unit of risk. If you would invest 795.00 in Harmony Gold Mining on November 7, 2024 and sell it today you would earn a total of 305.00 from holding Harmony Gold Mining or generate 38.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. Apollo Medical Holdings
Performance |
| Timeline |
| Harmony Gold Mining |
| Apollo Medical Holdings |
Harmony Gold and Apollo Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Apollo Medical
The main advantage of trading using opposite Harmony Gold and Apollo Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Apollo Medical 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 Apollo Medical will offset losses from the drop in Apollo Medical's long position.| Harmony Gold vs. SK TELECOM TDADR | Harmony Gold vs. COMBA TELECOM SYST | Harmony Gold vs. Comba Telecom Systems | Harmony Gold vs. QBE Insurance Group |
| Apollo Medical vs. NIGHTINGALE HEALTH EO | Apollo Medical vs. Chesapeake Utilities | Apollo Medical vs. ON SEMICONDUCTOR | Apollo Medical vs. Elmos Semiconductor SE |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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