Correlation Between Harmony Gold and AutoZone
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and AutoZone 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 AutoZone 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 AutoZone, you can compare the effects of market volatilities on Harmony Gold and AutoZone 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 AutoZone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and AutoZone.
Diversification Opportunities for Harmony Gold and AutoZone
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Harmony and AutoZone is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and AutoZone in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AutoZone 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 AutoZone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AutoZone has no effect on the direction of Harmony Gold i.e., Harmony Gold and AutoZone go up and down completely randomly.
Pair Corralation between Harmony Gold and AutoZone
Assuming the 90 days horizon Harmony Gold Mining is expected to under-perform the AutoZone. In addition to that, Harmony Gold is 3.51 times more volatile than AutoZone. It trades about -0.06 of its total potential returns per unit of risk. AutoZone is currently generating about -0.01 per unit of volatility. If you would invest 318,700 in AutoZone on October 12, 2024 and sell it today you would lose (600.00) from holding AutoZone or give up 0.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. AutoZone
Performance |
| Timeline |
| Harmony Gold Mining |
| AutoZone |
Harmony Gold and AutoZone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and AutoZone
The main advantage of trading using opposite Harmony Gold and AutoZone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, AutoZone 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 AutoZone will offset losses from the drop in AutoZone's long position.| Harmony Gold vs. FIREWEED METALS P | Harmony Gold vs. Air Transport Services | Harmony Gold vs. Calibre Mining Corp | Harmony Gold vs. Perseus Mining Limited |
| AutoZone vs. MCEWEN MINING INC | AutoZone vs. De Grey Mining | AutoZone vs. Harmony Gold Mining | AutoZone vs. MAGNUM MINING EXP |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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