Correlation Between Harmony Gold and THARISA NON
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and THARISA NON 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 THARISA NON 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 THARISA NON LIST, you can compare the effects of market volatilities on Harmony Gold and THARISA NON 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 THARISA NON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and THARISA NON.
Diversification Opportunities for Harmony Gold and THARISA NON
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Harmony and THARISA is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and THARISA NON LIST in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THARISA NON LIST 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 THARISA NON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THARISA NON LIST has no effect on the direction of Harmony Gold i.e., Harmony Gold and THARISA NON go up and down completely randomly.
Pair Corralation between Harmony Gold and THARISA NON
Assuming the 90 days horizon Harmony Gold Mining is expected to generate 1.05 times more return on investment than THARISA NON. However, Harmony Gold is 1.05 times more volatile than THARISA NON LIST. It trades about 0.5 of its potential returns per unit of risk. THARISA NON LIST is currently generating about -0.18 per unit of risk. If you would invest 770.00 in Harmony Gold Mining on October 28, 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 | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. THARISA NON LIST
Performance |
| Timeline |
| Harmony Gold Mining |
| THARISA NON LIST |
Harmony Gold and THARISA NON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and THARISA NON
The main advantage of trading using opposite Harmony Gold and THARISA NON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, THARISA NON 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 THARISA NON will offset losses from the drop in THARISA NON's long position.| Harmony Gold vs. ZIJIN MINH UNSPADR20 | Harmony Gold vs. Newmont | Harmony Gold vs. Superior Plus Corp | Harmony Gold vs. Origin Agritech |
| THARISA NON vs. CanSino Biologics | THARISA NON vs. MOLSON RS BEVERAGE | THARISA NON vs. United Breweries Co | THARISA NON vs. UNIVERSAL MUSIC GROUP |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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