Correlation Between Harmony Gold and Tradegate
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Tradegate 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 Tradegate 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 Tradegate AG Wertpapierhandelsbank, you can compare the effects of market volatilities on Harmony Gold and Tradegate 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 Tradegate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Tradegate.
Diversification Opportunities for Harmony Gold and Tradegate
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Harmony and Tradegate is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Tradegate AG Wertpapierhandels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tradegate AG Wertpap 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 Tradegate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tradegate AG Wertpap has no effect on the direction of Harmony Gold i.e., Harmony Gold and Tradegate go up and down completely randomly.
Pair Corralation between Harmony Gold and Tradegate
Assuming the 90 days horizon Harmony Gold Mining is expected to generate 2.96 times more return on investment than Tradegate. However, Harmony Gold is 2.96 times more volatile than Tradegate AG Wertpapierhandelsbank. It trades about 0.08 of its potential returns per unit of risk. Tradegate AG Wertpapierhandelsbank is currently generating about -0.03 per unit of risk. If you would invest 317.00 in Harmony Gold Mining on October 19, 2024 and sell it today you would earn a total of 608.00 from holding Harmony Gold Mining or generate 191.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. Tradegate AG Wertpapierhandels
Performance |
| Timeline |
| Harmony Gold Mining |
| Tradegate AG Wertpap |
Harmony Gold and Tradegate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Tradegate
The main advantage of trading using opposite Harmony Gold and Tradegate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Tradegate 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 Tradegate will offset losses from the drop in Tradegate's long position.| Harmony Gold vs. Apollo Investment Corp | Harmony Gold vs. Siemens Healthineers AG | Harmony Gold vs. National Health Investors | Harmony Gold vs. WESANA HEALTH HOLD |
| Tradegate vs. TOMBADOR IRON LTD | Tradegate vs. RELIANCE STEEL AL | Tradegate vs. VULCAN MATERIALS | Tradegate vs. Heidelberg Materials AG |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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