Correlation Between Harmony Gold and FEMALE HEALTH
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and FEMALE HEALTH 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 FEMALE HEALTH 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 FEMALE HEALTH, you can compare the effects of market volatilities on Harmony Gold and FEMALE HEALTH 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 FEMALE HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and FEMALE HEALTH.
Diversification Opportunities for Harmony Gold and FEMALE HEALTH
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Harmony and FEMALE is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and FEMALE HEALTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEMALE HEALTH 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 FEMALE HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEMALE HEALTH has no effect on the direction of Harmony Gold i.e., Harmony Gold and FEMALE HEALTH go up and down completely randomly.
Pair Corralation between Harmony Gold and FEMALE HEALTH
Assuming the 90 days horizon Harmony Gold Mining is expected to generate 0.87 times more return on investment than FEMALE HEALTH. However, Harmony Gold Mining is 1.15 times less risky than FEMALE HEALTH. It trades about 0.02 of its potential returns per unit of risk. FEMALE HEALTH is currently generating about -0.04 per unit of risk. If you would invest 820.00 in Harmony Gold Mining on September 1, 2024 and sell it today you would earn a total of 25.00 from holding Harmony Gold Mining or generate 3.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. FEMALE HEALTH
Performance |
| Timeline |
| Harmony Gold Mining |
| FEMALE HEALTH |
Harmony Gold and FEMALE HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and FEMALE HEALTH
The main advantage of trading using opposite Harmony Gold and FEMALE HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, FEMALE HEALTH 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 FEMALE HEALTH will offset losses from the drop in FEMALE HEALTH's long position.| Harmony Gold vs. ZIJIN MINH UNSPADR20 | Harmony Gold vs. Superior Plus Corp | Harmony Gold vs. NMI Holdings | Harmony Gold vs. Origin Agritech |
| FEMALE HEALTH vs. SIVERS SEMICONDUCTORS AB | FEMALE HEALTH vs. Darden Restaurants | FEMALE HEALTH vs. Reliance Steel Aluminum | FEMALE HEALTH vs. Q2M Managementberatung AG |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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