Correlation Between Harmony Gold and Marie Brizard
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Marie Brizard 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 Marie Brizard 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 Marie Brizard Wine, you can compare the effects of market volatilities on Harmony Gold and Marie Brizard 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 Marie Brizard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Marie Brizard.
Diversification Opportunities for Harmony Gold and Marie Brizard
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Harmony and Marie is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Marie Brizard Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marie Brizard Wine 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 Marie Brizard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marie Brizard Wine has no effect on the direction of Harmony Gold i.e., Harmony Gold and Marie Brizard go up and down completely randomly.
Pair Corralation between Harmony Gold and Marie Brizard
Assuming the 90 days horizon Harmony Gold Mining is expected to generate 2.44 times more return on investment than Marie Brizard. However, Harmony Gold is 2.44 times more volatile than Marie Brizard Wine. It trades about 0.7 of its potential returns per unit of risk. Marie Brizard Wine is currently generating about -0.61 per unit of risk. If you would invest 795.00 in Harmony Gold Mining on November 5, 2024 and sell it today you would earn a total of 305.00 from holding Harmony Gold Mining or generate 38.36% 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. Marie Brizard Wine
Performance |
| Timeline |
| Harmony Gold Mining |
| Marie Brizard Wine |
Harmony Gold and Marie Brizard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Marie Brizard
The main advantage of trading using opposite Harmony Gold and Marie Brizard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Marie Brizard 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 Marie Brizard will offset losses from the drop in Marie Brizard's long position.| Harmony Gold vs. ZIJIN MINH UNSPADR20 | Harmony Gold vs. Newmont | Harmony Gold vs. Barrick Gold | Harmony Gold vs. Franco Nevada |
| Marie Brizard vs. Apple Inc | Marie Brizard vs. Apple Inc | Marie Brizard vs. Apple Inc | Marie Brizard vs. Apple Inc |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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