Correlation Between Harmony Gold and Delta Electronics
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Delta Electronics 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 Delta Electronics 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 Delta Electronics Public, you can compare the effects of market volatilities on Harmony Gold and Delta Electronics 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 Delta Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Delta Electronics.
Diversification Opportunities for Harmony Gold and Delta Electronics
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Harmony and Delta is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Delta Electronics Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delta Electronics Public 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 Delta Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delta Electronics Public has no effect on the direction of Harmony Gold i.e., Harmony Gold and Delta Electronics go up and down completely randomly.
Pair Corralation between Harmony Gold and Delta Electronics
Assuming the 90 days horizon Harmony Gold Mining is expected to generate 0.9 times more return on investment than Delta Electronics. However, Harmony Gold Mining is 1.11 times less risky than Delta Electronics. It trades about 0.6 of its potential returns per unit of risk. Delta Electronics Public is currently generating about -0.16 per unit of risk. If you would invest 795.00 in Harmony Gold Mining on November 5, 2024 and sell it today you would earn a total of 275.00 from holding Harmony Gold Mining or generate 34.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. Delta Electronics Public
Performance |
| Timeline |
| Harmony Gold Mining |
| Delta Electronics Public |
Harmony Gold and Delta Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Delta Electronics
The main advantage of trading using opposite Harmony Gold and Delta Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Delta Electronics 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 Delta Electronics will offset losses from the drop in Delta Electronics' long position.| Harmony Gold vs. TITAN MACHINERY | Harmony Gold vs. Dairy Farm International | Harmony Gold vs. AOYAMA TRADING | Harmony Gold vs. SEI INVESTMENTS |
| Delta Electronics vs. SINGAPORE AIRLINES | Delta Electronics vs. BANK OF CHINA | Delta Electronics vs. PNC Financial Services | Delta Electronics vs. Webster Financial |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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