Correlation Between Harmony Gold and Coca Cola
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By analyzing existing cross correlation between Harmony Gold Mining and The Coca Cola, you can compare the effects of market volatilities on Harmony Gold and Coca Cola 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 Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Coca Cola.
Diversification Opportunities for Harmony Gold and Coca Cola
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Harmony and Coca is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and The Coca Cola in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola 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 Coca Cola. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coca Cola has no effect on the direction of Harmony Gold i.e., Harmony Gold and Coca Cola go up and down completely randomly.
Pair Corralation between Harmony Gold and Coca Cola
Assuming the 90 days horizon Harmony Gold Mining is expected to generate 2.75 times more return on investment than Coca Cola. However, Harmony Gold is 2.75 times more volatile than The Coca Cola. It trades about 0.48 of its potential returns per unit of risk. The Coca Cola is currently generating about -0.11 per unit of risk. If you would invest 770.00 in Harmony Gold Mining on October 27, 2024 and sell it today you would earn a total of 205.00 from holding Harmony Gold Mining or generate 26.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. The Coca Cola
Performance |
| Timeline |
| Harmony Gold Mining |
| Coca Cola |
Harmony Gold and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Coca Cola
The main advantage of trading using opposite Harmony Gold and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Coca Cola 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 Coca Cola will offset losses from the drop in Coca Cola's long position.| Harmony Gold vs. ZIJIN MINH UNSPADR20 | Harmony Gold vs. Newmont | Harmony Gold vs. Superior Plus Corp | Harmony Gold vs. Origin Agritech |
| Coca Cola vs. S E BANKEN A | Coca Cola vs. FIRST SHIP LEASE | Coca Cola vs. Commonwealth Bank of | Coca Cola vs. Discover Financial Services |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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