Correlation Between Harmony Gold and Mizuno
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Mizuno 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 Mizuno 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 Mizuno, you can compare the effects of market volatilities on Harmony Gold and Mizuno 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 Mizuno. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Mizuno.
Diversification Opportunities for Harmony Gold and Mizuno
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Harmony and Mizuno is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Mizuno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mizuno 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 Mizuno. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mizuno has no effect on the direction of Harmony Gold i.e., Harmony Gold and Mizuno go up and down completely randomly.
Pair Corralation between Harmony Gold and Mizuno
Assuming the 90 days horizon Harmony Gold Mining is expected to under-perform the Mizuno. In addition to that, Harmony Gold is 1.14 times more volatile than Mizuno. It trades about -0.05 of its total potential returns per unit of risk. Mizuno is currently generating about 0.33 per unit of volatility. If you would invest 4,440 in Mizuno on September 12, 2024 and sell it today you would earn a total of 910.00 from holding Mizuno or generate 20.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. Mizuno
Performance |
| Timeline |
| Harmony Gold Mining |
| Mizuno |
Harmony Gold and Mizuno Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Mizuno
The main advantage of trading using opposite Harmony Gold and Mizuno positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Mizuno 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 Mizuno will offset losses from the drop in Mizuno's long position.| Harmony Gold vs. Franco Nevada | Harmony Gold vs. Superior Plus Corp | Harmony Gold vs. SIVERS SEMICONDUCTORS AB | Harmony Gold vs. Norsk Hydro ASA |
| Mizuno vs. Superior Plus Corp | Mizuno vs. SIVERS SEMICONDUCTORS AB | Mizuno vs. NorAm Drilling AS | Mizuno vs. Norsk Hydro ASA |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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