Correlation Between Harmony Gold and AmerisourceBergen
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and AmerisourceBergen 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 AmerisourceBergen 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 AmerisourceBergen, you can compare the effects of market volatilities on Harmony Gold and AmerisourceBergen 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 AmerisourceBergen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and AmerisourceBergen.
Diversification Opportunities for Harmony Gold and AmerisourceBergen
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Harmony and AmerisourceBergen is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and AmerisourceBergen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AmerisourceBergen 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 AmerisourceBergen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AmerisourceBergen has no effect on the direction of Harmony Gold i.e., Harmony Gold and AmerisourceBergen go up and down completely randomly.
Pair Corralation between Harmony Gold and AmerisourceBergen
Assuming the 90 days horizon Harmony Gold Mining is expected to under-perform the AmerisourceBergen. In addition to that, Harmony Gold is 2.37 times more volatile than AmerisourceBergen. It trades about -0.17 of its total potential returns per unit of risk. AmerisourceBergen is currently generating about 0.37 per unit of volatility. If you would invest 20,791 in AmerisourceBergen on September 1, 2024 and sell it today you would earn a total of 2,614 from holding AmerisourceBergen or generate 12.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Harmony Gold Mining vs. AmerisourceBergen
Performance |
| Timeline |
| Harmony Gold Mining |
| AmerisourceBergen |
Harmony Gold and AmerisourceBergen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and AmerisourceBergen
The main advantage of trading using opposite Harmony Gold and AmerisourceBergen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, AmerisourceBergen 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 AmerisourceBergen will offset losses from the drop in AmerisourceBergen'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 |
| AmerisourceBergen vs. GRIFFIN MINING LTD | AmerisourceBergen vs. Harmony Gold Mining | AmerisourceBergen vs. UNITED RENTALS | AmerisourceBergen vs. CSSC Offshore Marine |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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