Correlation Between Harmony Gold and Toshiba Tec
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Toshiba Tec 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 Toshiba Tec 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 Toshiba Tec, you can compare the effects of market volatilities on Harmony Gold and Toshiba Tec 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 Toshiba Tec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Toshiba Tec.
Diversification Opportunities for Harmony Gold and Toshiba Tec
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Harmony and Toshiba is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Toshiba Tec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Toshiba Tec 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 Toshiba Tec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Toshiba Tec has no effect on the direction of Harmony Gold i.e., Harmony Gold and Toshiba Tec go up and down completely randomly.
Pair Corralation between Harmony Gold and Toshiba Tec
Assuming the 90 days horizon Harmony Gold Mining is expected to generate 1.37 times more return on investment than Toshiba Tec. However, Harmony Gold is 1.37 times more volatile than Toshiba Tec. It trades about 0.08 of its potential returns per unit of risk. Toshiba Tec is currently generating about 0.01 per unit of risk. If you would invest 312.00 in Harmony Gold Mining on September 12, 2024 and sell it today you would earn a total of 543.00 from holding Harmony Gold Mining or generate 174.04% 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. Toshiba Tec
Performance |
| Timeline |
| Harmony Gold Mining |
| Toshiba Tec |
Harmony Gold and Toshiba Tec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Toshiba Tec
The main advantage of trading using opposite Harmony Gold and Toshiba Tec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Toshiba Tec 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 Toshiba Tec will offset losses from the drop in Toshiba Tec'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 |
| Toshiba Tec vs. Playtech plc | Toshiba Tec vs. Harmony Gold Mining | Toshiba Tec vs. ARISTOCRAT LEISURE | Toshiba Tec vs. Western Copper and |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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