Correlation Between Harmony Gold and COMPUTERSHARE
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and COMPUTERSHARE 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 COMPUTERSHARE 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 COMPUTERSHARE, you can compare the effects of market volatilities on Harmony Gold and COMPUTERSHARE 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 COMPUTERSHARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and COMPUTERSHARE.
Diversification Opportunities for Harmony Gold and COMPUTERSHARE
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Harmony and COMPUTERSHARE is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and COMPUTERSHARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMPUTERSHARE 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 COMPUTERSHARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMPUTERSHARE has no effect on the direction of Harmony Gold i.e., Harmony Gold and COMPUTERSHARE go up and down completely randomly.
Pair Corralation between Harmony Gold and COMPUTERSHARE
Assuming the 90 days horizon Harmony Gold is expected to generate 1.37 times less return on investment than COMPUTERSHARE. In addition to that, Harmony Gold is 1.96 times more volatile than COMPUTERSHARE. It trades about 0.04 of its total potential returns per unit of risk. COMPUTERSHARE is currently generating about 0.11 per unit of volatility. If you would invest 1,610 in COMPUTERSHARE on October 17, 2024 and sell it today you would earn a total of 470.00 from holding COMPUTERSHARE or generate 29.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.32% |
| Values | Daily Returns |
Harmony Gold Mining vs. COMPUTERSHARE
Performance |
| Timeline |
| Harmony Gold Mining |
| COMPUTERSHARE |
Harmony Gold and COMPUTERSHARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and COMPUTERSHARE
The main advantage of trading using opposite Harmony Gold and COMPUTERSHARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, COMPUTERSHARE 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 COMPUTERSHARE will offset losses from the drop in COMPUTERSHARE's long position.| Harmony Gold vs. CONTAGIOUS GAMING INC | Harmony Gold vs. Boyd Gaming | Harmony Gold vs. CRISPR Therapeutics AG | Harmony Gold vs. TROPHY GAMES DEV |
| COMPUTERSHARE vs. ADRIATIC METALS LS 013355 | COMPUTERSHARE vs. Harmony Gold Mining | COMPUTERSHARE vs. UPDATE SOFTWARE | COMPUTERSHARE vs. ARDAGH METAL PACDL 0001 |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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