Correlation Between Harmony Gold and AOI Electronics
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and AOI 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 AOI 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 AOI Electronics Co, you can compare the effects of market volatilities on Harmony Gold and AOI 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 AOI Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and AOI Electronics.
Diversification Opportunities for Harmony Gold and AOI Electronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Harmony and AOI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and AOI Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AOI Electronics 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 AOI Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AOI Electronics has no effect on the direction of Harmony Gold i.e., Harmony Gold and AOI Electronics go up and down completely randomly.
Pair Corralation between Harmony Gold and AOI Electronics
If you would invest 355.00 in Harmony Gold Mining on December 17, 2024 and sell it today you would earn a total of 745.00 from holding Harmony Gold Mining or generate 209.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Harmony Gold Mining vs. AOI Electronics Co
Performance |
| Timeline |
| Harmony Gold Mining |
| AOI Electronics |
Harmony Gold and AOI Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and AOI Electronics
The main advantage of trading using opposite Harmony Gold and AOI Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, AOI 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 AOI Electronics will offset losses from the drop in AOI Electronics' long position.| Harmony Gold vs. G III APPAREL GROUP | ||
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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