Correlation Between Harmony Gold and Diös Fastigheter
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Diös Fastigheter 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 Diös Fastigheter 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 Dis Fastigheter AB, you can compare the effects of market volatilities on Harmony Gold and Diös Fastigheter 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 Diös Fastigheter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Diös Fastigheter.
Diversification Opportunities for Harmony Gold and Diös Fastigheter
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Harmony and Diös is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Dis Fastigheter AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dis Fastigheter AB 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 Diös Fastigheter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dis Fastigheter AB has no effect on the direction of Harmony Gold i.e., Harmony Gold and Diös Fastigheter go up and down completely randomly.
Pair Corralation between Harmony Gold and Diös Fastigheter
Assuming the 90 days horizon Harmony Gold Mining is expected to generate 1.42 times more return on investment than Diös Fastigheter. However, Harmony Gold is 1.42 times more volatile than Dis Fastigheter AB. It trades about 0.07 of its potential returns per unit of risk. Dis Fastigheter AB is currently generating about 0.05 per unit of risk. If you would invest 319.00 in Harmony Gold Mining on September 3, 2024 and sell it today you would earn a total of 531.00 from holding Harmony Gold Mining or generate 166.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. Dis Fastigheter AB
Performance |
| Timeline |
| Harmony Gold Mining |
| Dis Fastigheter AB |
Harmony Gold and Diös Fastigheter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Diös Fastigheter
The main advantage of trading using opposite Harmony Gold and Diös Fastigheter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Diös Fastigheter 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 Diös Fastigheter will offset losses from the drop in Diös Fastigheter'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 |
| Diös Fastigheter vs. Regions Financial | Diös Fastigheter vs. VITEC SOFTWARE GROUP | Diös Fastigheter vs. FORMPIPE SOFTWARE AB | Diös Fastigheter vs. ASURE SOFTWARE |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |