Correlation Between Harmony Gold and OFFICE DEPOT
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and OFFICE DEPOT 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 OFFICE DEPOT 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 OFFICE DEPOT, you can compare the effects of market volatilities on Harmony Gold and OFFICE DEPOT 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 OFFICE DEPOT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and OFFICE DEPOT.
Diversification Opportunities for Harmony Gold and OFFICE DEPOT
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Harmony and OFFICE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and OFFICE DEPOT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OFFICE DEPOT 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 OFFICE DEPOT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OFFICE DEPOT has no effect on the direction of Harmony Gold i.e., Harmony Gold and OFFICE DEPOT go up and down completely randomly.
Pair Corralation between Harmony Gold and OFFICE DEPOT
If you would invest 353.00 in Harmony Gold Mining on August 28, 2024 and sell it today you would earn a total of 577.00 from holding Harmony Gold Mining or generate 163.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. OFFICE DEPOT
Performance |
| Timeline |
| Harmony Gold Mining |
| OFFICE DEPOT |
Harmony Gold and OFFICE DEPOT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and OFFICE DEPOT
The main advantage of trading using opposite Harmony Gold and OFFICE DEPOT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, OFFICE DEPOT 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 OFFICE DEPOT will offset losses from the drop in OFFICE DEPOT's long position.| Harmony Gold vs. Franco Nevada | Harmony Gold vs. Agnico Eagle Mines | Harmony Gold vs. Superior Plus Corp | Harmony Gold vs. NMI Holdings |
| OFFICE DEPOT vs. Taylor Morrison Home | OFFICE DEPOT vs. Air New Zealand | OFFICE DEPOT vs. Corsair Gaming | OFFICE DEPOT vs. MI Homes |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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