Correlation Between Harmony Gold and TIMES CHINA
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and TIMES CHINA 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 TIMES CHINA 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 TIMES CHINA HLDGS, you can compare the effects of market volatilities on Harmony Gold and TIMES CHINA 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 TIMES CHINA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and TIMES CHINA.
Diversification Opportunities for Harmony Gold and TIMES CHINA
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Harmony and TIMES is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and TIMES CHINA HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TIMES CHINA HLDGS 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 TIMES CHINA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TIMES CHINA HLDGS has no effect on the direction of Harmony Gold i.e., Harmony Gold and TIMES CHINA go up and down completely randomly.
Pair Corralation between Harmony Gold and TIMES CHINA
Assuming the 90 days horizon Harmony Gold is expected to generate 175.62 times less return on investment than TIMES CHINA. But when comparing it to its historical volatility, Harmony Gold Mining is 4.42 times less risky than TIMES CHINA. It trades about 0.0 of its potential returns per unit of risk. TIMES CHINA HLDGS is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1.45 in TIMES CHINA HLDGS on October 7, 2024 and sell it today you would earn a total of 2.45 from holding TIMES CHINA HLDGS or generate 168.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. TIMES CHINA HLDGS
Performance |
| Timeline |
| Harmony Gold Mining |
| TIMES CHINA HLDGS |
Harmony Gold and TIMES CHINA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and TIMES CHINA
The main advantage of trading using opposite Harmony Gold and TIMES CHINA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, TIMES CHINA 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 TIMES CHINA will offset losses from the drop in TIMES CHINA's long position.| Harmony Gold vs. Wheaton Precious Metals | Harmony Gold vs. Superior Plus Corp | Harmony Gold vs. NMI Holdings | Harmony Gold vs. SIVERS SEMICONDUCTORS AB |
| TIMES CHINA vs. Sun Life Financial | TIMES CHINA vs. Gaztransport Technigaz SA | TIMES CHINA vs. UNIVMUSIC GRPADR050 | TIMES CHINA vs. Warner Music Group |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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