Correlation Between Harmony Gold and Ladder Capital
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Ladder Capital 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 Ladder Capital 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 Ladder Capital Corp, you can compare the effects of market volatilities on Harmony Gold and Ladder Capital 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 Ladder Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Ladder Capital.
Diversification Opportunities for Harmony Gold and Ladder Capital
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Harmony and Ladder is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Ladder Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ladder Capital Corp 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 Ladder Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ladder Capital Corp has no effect on the direction of Harmony Gold i.e., Harmony Gold and Ladder Capital go up and down completely randomly.
Pair Corralation between Harmony Gold and Ladder Capital
Assuming the 90 days horizon Harmony Gold Mining is expected to generate 2.23 times more return on investment than Ladder Capital. However, Harmony Gold is 2.23 times more volatile than Ladder Capital Corp. It trades about 0.1 of its potential returns per unit of risk. Ladder Capital Corp is currently generating about 0.05 per unit of risk. If you would invest 316.00 in Harmony Gold Mining on October 16, 2024 and sell it today you would earn a total of 564.00 from holding Harmony Gold Mining or generate 178.48% 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. Ladder Capital Corp
Performance |
| Timeline |
| Harmony Gold Mining |
| Ladder Capital Corp |
Harmony Gold and Ladder Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Ladder Capital
The main advantage of trading using opposite Harmony Gold and Ladder Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Ladder Capital 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 Ladder Capital will offset losses from the drop in Ladder Capital's long position.| Harmony Gold vs. Shenandoah Telecommunications | Harmony Gold vs. Charter Communications | Harmony Gold vs. Zoom Video Communications | Harmony Gold vs. PARKEN Sport Entertainment |
| Ladder Capital vs. INFORMATION SVC GRP | Ladder Capital vs. Harmony Gold Mining | Ladder Capital vs. DATATEC LTD 2 | Ladder Capital vs. ARDAGH METAL PACDL 0001 |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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