Correlation Between Harmony Gold and Bilibili
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Bilibili 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 Bilibili 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 Bilibili, you can compare the effects of market volatilities on Harmony Gold and Bilibili 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 Bilibili. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Bilibili.
Diversification Opportunities for Harmony Gold and Bilibili
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Harmony and Bilibili is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Bilibili in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bilibili 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 Bilibili. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bilibili has no effect on the direction of Harmony Gold i.e., Harmony Gold and Bilibili go up and down completely randomly.
Pair Corralation between Harmony Gold and Bilibili
Assuming the 90 days horizon Harmony Gold Mining is expected to under-perform the Bilibili. But the stock apears to be less risky and, when comparing its historical volatility, Harmony Gold Mining is 1.24 times less risky than Bilibili. The stock trades about -0.22 of its potential returns per unit of risk. The Bilibili is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 2,000 in Bilibili on August 30, 2024 and sell it today you would lose (240.00) from holding Bilibili or give up 12.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. Bilibili
Performance |
| Timeline |
| Harmony Gold Mining |
| Bilibili |
Harmony Gold and Bilibili Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Bilibili
The main advantage of trading using opposite Harmony Gold and Bilibili positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Bilibili 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 Bilibili will offset losses from the drop in Bilibili'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 |
| Bilibili vs. CyberArk Software | Bilibili vs. ASURE SOFTWARE | Bilibili vs. OFFICE DEPOT | Bilibili vs. INTERCONT HOTELS |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |