Correlation Between Harmony Gold and Alstria Office
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Alstria Office 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 Alstria Office 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 alstria office REIT AG, you can compare the effects of market volatilities on Harmony Gold and Alstria Office 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 Alstria Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Alstria Office.
Diversification Opportunities for Harmony Gold and Alstria Office
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Harmony and Alstria is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and alstria office REIT AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on alstria office REIT 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 Alstria Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of alstria office REIT has no effect on the direction of Harmony Gold i.e., Harmony Gold and Alstria Office go up and down completely randomly.
Pair Corralation between Harmony Gold and Alstria Office
Assuming the 90 days horizon Harmony Gold is expected to generate 1.92 times less return on investment than Alstria Office. But when comparing it to its historical volatility, Harmony Gold Mining is 1.46 times less risky than Alstria Office. It trades about 0.08 of its potential returns per unit of risk. alstria office REIT AG is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 340.00 in alstria office REIT AG on November 1, 2024 and sell it today you would earn a total of 210.00 from holding alstria office REIT AG or generate 61.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. alstria office REIT AG
Performance |
| Timeline |
| Harmony Gold Mining |
| alstria office REIT |
Harmony Gold and Alstria Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Alstria Office
The main advantage of trading using opposite Harmony Gold and Alstria Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Alstria Office 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 Alstria Office will offset losses from the drop in Alstria Office's long position.| Harmony Gold vs. ZIJIN MINH UNSPADR20 | Harmony Gold vs. Newmont | Harmony Gold vs. Superior Plus Corp | Harmony Gold vs. Origin Agritech |
| Alstria Office vs. Digital Realty Trust | Alstria Office vs. Gecina SA | Alstria Office vs. Japan Real Estate | Alstria Office vs. SL Green Realty |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |