Correlation Between Harmony Gold and HF SINCLAIR
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and HF SINCLAIR 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 HF SINCLAIR 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 HF SINCLAIR P, you can compare the effects of market volatilities on Harmony Gold and HF SINCLAIR 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 HF SINCLAIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and HF SINCLAIR.
Diversification Opportunities for Harmony Gold and HF SINCLAIR
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Harmony and HL80 is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and HF SINCLAIR P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HF SINCLAIR P 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 HF SINCLAIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HF SINCLAIR P has no effect on the direction of Harmony Gold i.e., Harmony Gold and HF SINCLAIR go up and down completely randomly.
Pair Corralation between Harmony Gold and HF SINCLAIR
Assuming the 90 days horizon Harmony Gold Mining is expected to generate 1.08 times more return on investment than HF SINCLAIR. However, Harmony Gold is 1.08 times more volatile than HF SINCLAIR P. It trades about 0.13 of its potential returns per unit of risk. HF SINCLAIR P is currently generating about -0.11 per unit of risk. If you would invest 880.00 in Harmony Gold Mining on December 11, 2024 and sell it today you would earn a total of 140.00 from holding Harmony Gold Mining or generate 15.91% 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. HF SINCLAIR P
Performance |
| Timeline |
| Harmony Gold Mining |
| HF SINCLAIR P |
Harmony Gold and HF SINCLAIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and HF SINCLAIR
The main advantage of trading using opposite Harmony Gold and HF SINCLAIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, HF SINCLAIR 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 HF SINCLAIR will offset losses from the drop in HF SINCLAIR's long position.| Harmony Gold vs. ZIJIN MINH UNSPADR20 | Harmony Gold vs. Newmont | Harmony Gold vs. Barrick Gold | Harmony Gold vs. Franco Nevada |
| HF SINCLAIR vs. KAUFMAN ET BROAD | HF SINCLAIR vs. COPLAND ROAD CAPITAL | HF SINCLAIR vs. Broadcom | HF SINCLAIR vs. LG Electronics |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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