Correlation Between Harmony Gold and MAVEN WIRELESS
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and MAVEN WIRELESS 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 MAVEN WIRELESS 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 MAVEN WIRELESS SWEDEN, you can compare the effects of market volatilities on Harmony Gold and MAVEN WIRELESS 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 MAVEN WIRELESS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and MAVEN WIRELESS.
Diversification Opportunities for Harmony Gold and MAVEN WIRELESS
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Harmony and MAVEN is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and MAVEN WIRELESS SWEDEN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAVEN WIRELESS SWEDEN 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 MAVEN WIRELESS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAVEN WIRELESS SWEDEN has no effect on the direction of Harmony Gold i.e., Harmony Gold and MAVEN WIRELESS go up and down completely randomly.
Pair Corralation between Harmony Gold and MAVEN WIRELESS
Assuming the 90 days horizon Harmony Gold Mining is expected to generate 0.53 times more return on investment than MAVEN WIRELESS. However, Harmony Gold Mining is 1.88 times less risky than MAVEN WIRELESS. It trades about 0.41 of its potential returns per unit of risk. MAVEN WIRELESS SWEDEN is currently generating about 0.16 per unit of risk. If you would invest 830.00 in Harmony Gold Mining on November 1, 2024 and sell it today you would earn a total of 170.00 from holding Harmony Gold Mining or generate 20.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. MAVEN WIRELESS SWEDEN
Performance |
| Timeline |
| Harmony Gold Mining |
| MAVEN WIRELESS SWEDEN |
Harmony Gold and MAVEN WIRELESS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and MAVEN WIRELESS
The main advantage of trading using opposite Harmony Gold and MAVEN WIRELESS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, MAVEN WIRELESS 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 MAVEN WIRELESS will offset losses from the drop in MAVEN WIRELESS's long position.| Harmony Gold vs. ZIJIN MINH UNSPADR20 | Harmony Gold vs. Newmont | Harmony Gold vs. Superior Plus Corp | Harmony Gold vs. Origin Agritech |
| MAVEN WIRELESS vs. Coor Service Management | MAVEN WIRELESS vs. Sims Metal Management | MAVEN WIRELESS vs. CeoTronics AG | MAVEN WIRELESS vs. Cleanaway Waste Management |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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