Correlation Between Harmony Gold and COMINTL BANK
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and COMINTL BANK 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 COMINTL BANK 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 COMINTL BANK ADR1, you can compare the effects of market volatilities on Harmony Gold and COMINTL BANK 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 COMINTL BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and COMINTL BANK.
Diversification Opportunities for Harmony Gold and COMINTL BANK
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Harmony and COMINTL is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and COMINTL BANK ADR1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMINTL BANK ADR1 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 COMINTL BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMINTL BANK ADR1 has no effect on the direction of Harmony Gold i.e., Harmony Gold and COMINTL BANK go up and down completely randomly.
Pair Corralation between Harmony Gold and COMINTL BANK
Assuming the 90 days horizon Harmony Gold Mining is expected to under-perform the COMINTL BANK. In addition to that, Harmony Gold is 1.33 times more volatile than COMINTL BANK ADR1. It trades about -0.13 of its total potential returns per unit of risk. COMINTL BANK ADR1 is currently generating about 0.03 per unit of volatility. If you would invest 123.00 in COMINTL BANK ADR1 on September 4, 2024 and sell it today you would earn a total of 1.00 from holding COMINTL BANK ADR1 or generate 0.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. COMINTL BANK ADR1
Performance |
| Timeline |
| Harmony Gold Mining |
| COMINTL BANK ADR1 |
Harmony Gold and COMINTL BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and COMINTL BANK
The main advantage of trading using opposite Harmony Gold and COMINTL BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, COMINTL BANK 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 COMINTL BANK will offset losses from the drop in COMINTL BANK's long position.| Harmony Gold vs. ZIJIN MINH UNSPADR20 | Harmony Gold vs. Barrick Gold | Harmony Gold vs. Superior Plus Corp | Harmony Gold vs. NMI Holdings |
| COMINTL BANK vs. Superior Plus Corp | COMINTL BANK vs. NMI Holdings | COMINTL BANK vs. Origin Agritech | COMINTL BANK vs. SIVERS SEMICONDUCTORS AB |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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