Correlation Between Harmony Gold and PKSHA TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY INC, you can compare the effects of market volatilities on Harmony Gold and PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and PKSHA TECHNOLOGY.
Diversification Opportunities for Harmony Gold and PKSHA TECHNOLOGY
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Harmony and PKSHA is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and PKSHA TECHNOLOGY INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PKSHA TECHNOLOGY INC 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 PKSHA TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PKSHA TECHNOLOGY INC has no effect on the direction of Harmony Gold i.e., Harmony Gold and PKSHA TECHNOLOGY go up and down completely randomly.
Pair Corralation between Harmony Gold and PKSHA TECHNOLOGY
Assuming the 90 days horizon Harmony Gold Mining is expected to under-perform the PKSHA TECHNOLOGY. In addition to that, Harmony Gold is 1.0 times more volatile than PKSHA TECHNOLOGY INC. It trades about -0.21 of its total potential returns per unit of risk. PKSHA TECHNOLOGY INC is currently generating about 0.15 per unit of volatility. If you would invest 2,200 in PKSHA TECHNOLOGY INC on August 31, 2024 and sell it today you would earn a total of 240.00 from holding PKSHA TECHNOLOGY INC or generate 10.91% 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. PKSHA TECHNOLOGY INC
Performance |
| Timeline |
| Harmony Gold Mining |
| PKSHA TECHNOLOGY INC |
Harmony Gold and PKSHA TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and PKSHA TECHNOLOGY
The main advantage of trading using opposite Harmony Gold and PKSHA TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY will offset losses from the drop in PKSHA TECHNOLOGY's long position.| Harmony Gold vs. ZIJIN MINH UNSPADR20 | Harmony Gold vs. Superior Plus Corp | Harmony Gold vs. NMI Holdings | Harmony Gold vs. Origin Agritech |
| PKSHA TECHNOLOGY vs. Microsoft | PKSHA TECHNOLOGY vs. VeriSign | PKSHA TECHNOLOGY vs. Superior Plus Corp | PKSHA TECHNOLOGY vs. NMI Holdings |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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