Correlation Between Harmony Gold and Altiplano Metals
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Altiplano Metals 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 Altiplano Metals 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 Altiplano Metals, you can compare the effects of market volatilities on Harmony Gold and Altiplano Metals 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 Altiplano Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Altiplano Metals.
Diversification Opportunities for Harmony Gold and Altiplano Metals
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Harmony and Altiplano is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Altiplano Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altiplano Metals 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 Altiplano Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altiplano Metals has no effect on the direction of Harmony Gold i.e., Harmony Gold and Altiplano Metals go up and down completely randomly.
Pair Corralation between Harmony Gold and Altiplano Metals
If you would invest 795.00 in Harmony Gold Mining on October 20, 2024 and sell it today you would earn a total of 150.00 from holding Harmony Gold Mining or generate 18.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Harmony Gold Mining vs. Altiplano Metals
Performance |
| Timeline |
| Harmony Gold Mining |
| Altiplano Metals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Harmony Gold and Altiplano Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Altiplano Metals
The main advantage of trading using opposite Harmony Gold and Altiplano Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Altiplano Metals 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 Altiplano Metals will offset losses from the drop in Altiplano Metals' long position.| Harmony Gold vs. Soken Chemical Engineering | Harmony Gold vs. Amkor Technology | Harmony Gold vs. Siamgas And Petrochemicals | Harmony Gold vs. BioNTech SE |
| Altiplano Metals vs. REVO INSURANCE SPA | Altiplano Metals vs. Direct Line Insurance | Altiplano Metals vs. INTERSHOP Communications Aktiengesellschaft | Altiplano Metals vs. Webster Financial |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |