Correlation Between Harmony Gold and Gladstone Commercial
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Gladstone Commercial 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 Gladstone Commercial 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 Gladstone Commercial, you can compare the effects of market volatilities on Harmony Gold and Gladstone Commercial 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 Gladstone Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Gladstone Commercial.
Diversification Opportunities for Harmony Gold and Gladstone Commercial
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Harmony and Gladstone is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Gladstone Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gladstone Commercial 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 Gladstone Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gladstone Commercial has no effect on the direction of Harmony Gold i.e., Harmony Gold and Gladstone Commercial go up and down completely randomly.
Pair Corralation between Harmony Gold and Gladstone Commercial
Assuming the 90 days horizon Harmony Gold is expected to generate 6.2 times less return on investment than Gladstone Commercial. In addition to that, Harmony Gold is 2.04 times more volatile than Gladstone Commercial. It trades about 0.01 of its total potential returns per unit of risk. Gladstone Commercial is currently generating about 0.1 per unit of volatility. If you would invest 1,165 in Gladstone Commercial on October 12, 2024 and sell it today you would earn a total of 379.00 from holding Gladstone Commercial or generate 32.53% 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. Gladstone Commercial
Performance |
| Timeline |
| Harmony Gold Mining |
| Gladstone Commercial |
Harmony Gold and Gladstone Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Gladstone Commercial
The main advantage of trading using opposite Harmony Gold and Gladstone Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Gladstone Commercial 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 Gladstone Commercial will offset losses from the drop in Gladstone Commercial's long position.| Harmony Gold vs. Corporate Office Properties | Harmony Gold vs. SILVER BULLET DATA | Harmony Gold vs. alstria office REIT AG | Harmony Gold vs. CITY OFFICE REIT |
| Gladstone Commercial vs. Harmony Gold Mining | Gladstone Commercial vs. Calibre Mining Corp | Gladstone Commercial vs. SPORT LISBOA E | Gladstone Commercial vs. BII Railway Transportation |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Stocks Directory Find actively traded stocks across global markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |