Correlation Between Harmony Gold and Uber Technologies
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Uber Technologies 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 Uber Technologies 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 Uber Technologies, you can compare the effects of market volatilities on Harmony Gold and Uber Technologies 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 Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Uber Technologies.
Diversification Opportunities for Harmony Gold and Uber Technologies
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Harmony and Uber is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies 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 Uber Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uber Technologies has no effect on the direction of Harmony Gold i.e., Harmony Gold and Uber Technologies go up and down completely randomly.
Pair Corralation between Harmony Gold and Uber Technologies
Assuming the 90 days horizon Harmony Gold Mining is expected to under-perform the Uber Technologies. In addition to that, Harmony Gold is 1.93 times more volatile than Uber Technologies. It trades about -0.13 of its total potential returns per unit of risk. Uber Technologies is currently generating about 0.1 per unit of volatility. If you would invest 6,745 in Uber Technologies on September 4, 2024 and sell it today you would earn a total of 228.00 from holding Uber Technologies or generate 3.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. Uber Technologies
Performance |
| Timeline |
| Harmony Gold Mining |
| Uber Technologies |
Harmony Gold and Uber Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Uber Technologies
The main advantage of trading using opposite Harmony Gold and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Uber Technologies 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 Uber Technologies will offset losses from the drop in Uber Technologies' long position.| Harmony Gold vs. ZIJIN MINH UNSPADR20 | Harmony Gold vs. Barrick Gold | Harmony Gold vs. Superior Plus Corp | Harmony Gold vs. NMI Holdings |
| Uber Technologies vs. SERI INDUSTRIAL EO | Uber Technologies vs. TYSON FOODS A | Uber Technologies vs. Harmony Gold Mining | Uber Technologies vs. GREENX METALS LTD |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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