Correlation Between Harmony Gold and Broadridge Financial
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Broadridge Financial 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 Broadridge Financial 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 Broadridge Financial Solutions, you can compare the effects of market volatilities on Harmony Gold and Broadridge Financial 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 Broadridge Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Broadridge Financial.
Diversification Opportunities for Harmony Gold and Broadridge Financial
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Harmony and Broadridge is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Broadridge Financial Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Broadridge Financial 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 Broadridge Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Broadridge Financial has no effect on the direction of Harmony Gold i.e., Harmony Gold and Broadridge Financial go up and down completely randomly.
Pair Corralation between Harmony Gold and Broadridge Financial
Assuming the 90 days horizon Harmony Gold Mining is expected to generate 2.07 times more return on investment than Broadridge Financial. However, Harmony Gold is 2.07 times more volatile than Broadridge Financial Solutions. It trades about 0.54 of its potential returns per unit of risk. Broadridge Financial Solutions is currently generating about 0.12 per unit of risk. If you would invest 770.00 in Harmony Gold Mining on October 26, 2024 and sell it today you would earn a total of 220.00 from holding Harmony Gold Mining or generate 28.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. Broadridge Financial Solutions
Performance |
| Timeline |
| Harmony Gold Mining |
| Broadridge Financial |
Harmony Gold and Broadridge Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Broadridge Financial
The main advantage of trading using opposite Harmony Gold and Broadridge Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Broadridge Financial 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 Broadridge Financial will offset losses from the drop in Broadridge Financial's long position.| Harmony Gold vs. ZIJIN MINH UNSPADR20 | Harmony Gold vs. Newmont | Harmony Gold vs. Superior Plus Corp | Harmony Gold vs. Origin Agritech |
| Broadridge Financial vs. SUN LIFE FINANCIAL | Broadridge Financial vs. ARDAGH METAL PACDL 0001 | Broadridge Financial vs. Harmony Gold Mining | Broadridge Financial vs. Perseus Mining Limited |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Stocks Directory Find actively traded stocks across global markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |