Correlation Between Harmony Gold and SERI INDUSTRIAL
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and SERI INDUSTRIAL 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 SERI INDUSTRIAL 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 SERI INDUSTRIAL EO, you can compare the effects of market volatilities on Harmony Gold and SERI INDUSTRIAL 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 SERI INDUSTRIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and SERI INDUSTRIAL.
Diversification Opportunities for Harmony Gold and SERI INDUSTRIAL
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Harmony and SERI is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and SERI INDUSTRIAL EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SERI INDUSTRIAL EO 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 SERI INDUSTRIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SERI INDUSTRIAL EO has no effect on the direction of Harmony Gold i.e., Harmony Gold and SERI INDUSTRIAL go up and down completely randomly.
Pair Corralation between Harmony Gold and SERI INDUSTRIAL
Assuming the 90 days horizon Harmony Gold Mining is expected to generate 0.95 times more return on investment than SERI INDUSTRIAL. However, Harmony Gold Mining is 1.06 times less risky than SERI INDUSTRIAL. It trades about 0.02 of its potential returns per unit of risk. SERI INDUSTRIAL EO is currently generating about -0.05 per unit of risk. If you would invest 820.00 in Harmony Gold Mining on August 31, 2024 and sell it today you would earn a total of 25.00 from holding Harmony Gold Mining or generate 3.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.23% |
| Values | Daily Returns |
Harmony Gold Mining vs. SERI INDUSTRIAL EO
Performance |
| Timeline |
| Harmony Gold Mining |
| SERI INDUSTRIAL EO |
Harmony Gold and SERI INDUSTRIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and SERI INDUSTRIAL
The main advantage of trading using opposite Harmony Gold and SERI INDUSTRIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, SERI INDUSTRIAL 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 SERI INDUSTRIAL will offset losses from the drop in SERI INDUSTRIAL's long position.| Harmony Gold vs. ZIJIN MINH UNSPADR20 | Harmony Gold vs. Superior Plus Corp | Harmony Gold vs. NMI Holdings | Harmony Gold vs. Origin Agritech |
| SERI INDUSTRIAL vs. Apple Inc | SERI INDUSTRIAL vs. Apple Inc | SERI INDUSTRIAL vs. Apple Inc | SERI INDUSTRIAL vs. Apple Inc |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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