Correlation Between Harmony Gold and SYSTEMAIR
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and SYSTEMAIR 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 SYSTEMAIR 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 SYSTEMAIR AB, you can compare the effects of market volatilities on Harmony Gold and SYSTEMAIR 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 SYSTEMAIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and SYSTEMAIR.
Diversification Opportunities for Harmony Gold and SYSTEMAIR
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Harmony and SYSTEMAIR is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and SYSTEMAIR AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SYSTEMAIR AB 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 SYSTEMAIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SYSTEMAIR AB has no effect on the direction of Harmony Gold i.e., Harmony Gold and SYSTEMAIR go up and down completely randomly.
Pair Corralation between Harmony Gold and SYSTEMAIR
Assuming the 90 days horizon Harmony Gold Mining is expected to generate 1.24 times more return on investment than SYSTEMAIR. However, Harmony Gold is 1.24 times more volatile than SYSTEMAIR AB. It trades about 0.08 of its potential returns per unit of risk. SYSTEMAIR AB is currently generating about 0.08 per unit of risk. If you would invest 561.00 in Harmony Gold Mining on August 29, 2024 and sell it today you would earn a total of 369.00 from holding Harmony Gold Mining or generate 65.78% 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. SYSTEMAIR AB
Performance |
| Timeline |
| Harmony Gold Mining |
| SYSTEMAIR AB |
Harmony Gold and SYSTEMAIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and SYSTEMAIR
The main advantage of trading using opposite Harmony Gold and SYSTEMAIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, SYSTEMAIR 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 SYSTEMAIR will offset losses from the drop in SYSTEMAIR's long position.| Harmony Gold vs. Franco Nevada | Harmony Gold vs. Agnico Eagle Mines | Harmony Gold vs. Superior Plus Corp | Harmony Gold vs. NMI Holdings |
| SYSTEMAIR vs. AUST AGRICULTURAL | SYSTEMAIR vs. AGRICULTBK HADR25 YC | SYSTEMAIR vs. GEAR4MUSIC LS 10 | SYSTEMAIR vs. TITAN MACHINERY |
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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