Correlation Between Harmony Gold and TELE2 AB
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and TELE2 AB 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 TELE2 AB 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 TELE2 AB UNSPADR12, you can compare the effects of market volatilities on Harmony Gold and TELE2 AB 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 TELE2 AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and TELE2 AB.
Diversification Opportunities for Harmony Gold and TELE2 AB
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Harmony and TELE2 is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and TELE2 AB UNSPADR12 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TELE2 AB UNSPADR12 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 TELE2 AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TELE2 AB UNSPADR12 has no effect on the direction of Harmony Gold i.e., Harmony Gold and TELE2 AB go up and down completely randomly.
Pair Corralation between Harmony Gold and TELE2 AB
Assuming the 90 days horizon Harmony Gold Mining is expected to under-perform the TELE2 AB. In addition to that, Harmony Gold is 1.76 times more volatile than TELE2 AB UNSPADR12. It trades about 0.0 of its total potential returns per unit of risk. TELE2 AB UNSPADR12 is currently generating about 0.04 per unit of volatility. If you would invest 475.00 in TELE2 AB UNSPADR12 on September 3, 2024 and sell it today you would earn a total of 11.00 from holding TELE2 AB UNSPADR12 or generate 2.32% 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. TELE2 AB UNSPADR12
Performance |
| Timeline |
| Harmony Gold Mining |
| TELE2 AB UNSPADR12 |
Harmony Gold and TELE2 AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and TELE2 AB
The main advantage of trading using opposite Harmony Gold and TELE2 AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, TELE2 AB 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 TELE2 AB will offset losses from the drop in TELE2 AB's long position.| Harmony Gold vs. ZIJIN MINH UNSPADR20 | Harmony Gold vs. Barrick Gold | Harmony Gold vs. Superior Plus Corp | Harmony Gold vs. NMI Holdings |
| TELE2 AB vs. Spirent Communications plc | TELE2 AB vs. Entravision Communications | TELE2 AB vs. MAROC TELECOM | TELE2 AB vs. WillScot Mobile Mini |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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