Correlation Between Harmony Gold and ATOSS Software
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and ATOSS Software 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 ATOSS Software 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 ATOSS Software SE, you can compare the effects of market volatilities on Harmony Gold and ATOSS Software 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 ATOSS Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and ATOSS Software.
Diversification Opportunities for Harmony Gold and ATOSS Software
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Harmony and ATOSS is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and ATOSS Software SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATOSS Software SE 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 ATOSS Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATOSS Software SE has no effect on the direction of Harmony Gold i.e., Harmony Gold and ATOSS Software go up and down completely randomly.
Pair Corralation between Harmony Gold and ATOSS Software
Assuming the 90 days horizon Harmony Gold Mining is expected to generate 1.65 times more return on investment than ATOSS Software. However, Harmony Gold is 1.65 times more volatile than ATOSS Software SE. It trades about 0.05 of its potential returns per unit of risk. ATOSS Software SE is currently generating about 0.03 per unit of risk. If you would invest 745.00 in Harmony Gold Mining on September 13, 2024 and sell it today you would earn a total of 120.00 from holding Harmony Gold Mining or generate 16.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
Harmony Gold Mining vs. ATOSS Software SE
Performance |
| Timeline |
| Harmony Gold Mining |
| ATOSS Software SE |
Harmony Gold and ATOSS Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and ATOSS Software
The main advantage of trading using opposite Harmony Gold and ATOSS Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, ATOSS Software 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 ATOSS Software will offset losses from the drop in ATOSS Software's long position.| Harmony Gold vs. Franco Nevada | Harmony Gold vs. Superior Plus Corp | Harmony Gold vs. SIVERS SEMICONDUCTORS AB | Harmony Gold vs. Norsk Hydro ASA |
| ATOSS Software vs. PT Bank Maybank | ATOSS Software vs. Chiba Bank | ATOSS Software vs. Perseus Mining Limited | ATOSS Software vs. GALENA MINING LTD |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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