Correlation Between Harmony Gold and Intel
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Intel 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 Intel 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 Intel, you can compare the effects of market volatilities on Harmony Gold and Intel 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 Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Intel.
Diversification Opportunities for Harmony Gold and Intel
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Harmony and Intel is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel 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 Intel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel has no effect on the direction of Harmony Gold i.e., Harmony Gold and Intel go up and down completely randomly.
Pair Corralation between Harmony Gold and Intel
Assuming the 90 days horizon Harmony Gold Mining is expected to under-perform the Intel. But the stock apears to be less risky and, when comparing its historical volatility, Harmony Gold Mining is 1.03 times less risky than Intel. The stock trades about -0.22 of its potential returns per unit of risk. The Intel is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,111 in Intel on August 30, 2024 and sell it today you would earn a total of 91.00 from holding Intel or generate 4.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Harmony Gold Mining vs. Intel
Performance |
| Timeline |
| Harmony Gold Mining |
| Intel |
Harmony Gold and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Intel
The main advantage of trading using opposite Harmony Gold and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Intel 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 Intel will offset losses from the drop in Intel's long position.| Harmony Gold vs. Franco Nevada | Harmony Gold vs. Wheaton Precious Metals | Harmony Gold vs. Superior Plus Corp | Harmony Gold vs. NMI Holdings |
| Intel vs. GREENX METALS LTD | Intel vs. Harmony Gold Mining | Intel vs. SEALED AIR | Intel vs. Corsair Gaming |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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