Correlation Between Harmony Gold and TIANDE CHEMICAL
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and TIANDE CHEMICAL 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 TIANDE CHEMICAL 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 TIANDE CHEMICAL, you can compare the effects of market volatilities on Harmony Gold and TIANDE CHEMICAL 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 TIANDE CHEMICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and TIANDE CHEMICAL.
Diversification Opportunities for Harmony Gold and TIANDE CHEMICAL
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Harmony and TIANDE is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and TIANDE CHEMICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TIANDE CHEMICAL 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 TIANDE CHEMICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TIANDE CHEMICAL has no effect on the direction of Harmony Gold i.e., Harmony Gold and TIANDE CHEMICAL go up and down completely randomly.
Pair Corralation between Harmony Gold and TIANDE CHEMICAL
If you would invest 7.25 in TIANDE CHEMICAL on September 12, 2024 and sell it today you would earn a total of 0.00 from holding TIANDE CHEMICAL or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. TIANDE CHEMICAL
Performance |
| Timeline |
| Harmony Gold Mining |
| TIANDE CHEMICAL |
Harmony Gold and TIANDE CHEMICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and TIANDE CHEMICAL
The main advantage of trading using opposite Harmony Gold and TIANDE CHEMICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, TIANDE CHEMICAL 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 TIANDE CHEMICAL will offset losses from the drop in TIANDE CHEMICAL's long position.| Harmony Gold vs. Franco Nevada | Harmony Gold vs. Superior Plus Corp | Harmony Gold vs. SIVERS SEMICONDUCTORS AB | Harmony Gold vs. Norsk Hydro ASA |
| TIANDE CHEMICAL vs. Summit Hotel Properties | TIANDE CHEMICAL vs. MELIA HOTELS | TIANDE CHEMICAL vs. Japan Tobacco | TIANDE CHEMICAL vs. Host Hotels Resorts |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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