Correlation Between Harmony Gold and GRUPO CARSO
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and GRUPO CARSO 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 GRUPO CARSO 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 GRUPO CARSO A1, you can compare the effects of market volatilities on Harmony Gold and GRUPO CARSO 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 GRUPO CARSO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and GRUPO CARSO.
Diversification Opportunities for Harmony Gold and GRUPO CARSO
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Harmony and GRUPO is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and GRUPO CARSO A1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRUPO CARSO A1 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 GRUPO CARSO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRUPO CARSO A1 has no effect on the direction of Harmony Gold i.e., Harmony Gold and GRUPO CARSO go up and down completely randomly.
Pair Corralation between Harmony Gold and GRUPO CARSO
Assuming the 90 days horizon Harmony Gold Mining is expected to generate 0.86 times more return on investment than GRUPO CARSO. However, Harmony Gold Mining is 1.16 times less risky than GRUPO CARSO. It trades about 0.1 of its potential returns per unit of risk. GRUPO CARSO A1 is currently generating about 0.02 per unit of risk. If you would invest 372.00 in Harmony Gold Mining on August 29, 2024 and sell it today you would earn a total of 488.00 from holding Harmony Gold Mining or generate 131.18% 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. GRUPO CARSO A1
Performance |
| Timeline |
| Harmony Gold Mining |
| GRUPO CARSO A1 |
Harmony Gold and GRUPO CARSO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and GRUPO CARSO
The main advantage of trading using opposite Harmony Gold and GRUPO CARSO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, GRUPO CARSO 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 GRUPO CARSO will offset losses from the drop in GRUPO CARSO's long position.| Harmony Gold vs. Franco Nevada | Harmony Gold vs. Wheaton Precious Metals | Harmony Gold vs. Superior Plus Corp | Harmony Gold vs. NMI Holdings |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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