Correlation Between Harmony Gold and Calibre Mining
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Calibre Mining 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 Calibre Mining 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 Calibre Mining Corp, you can compare the effects of market volatilities on Harmony Gold and Calibre Mining 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 Calibre Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Calibre Mining.
Diversification Opportunities for Harmony Gold and Calibre Mining
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Harmony and Calibre is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Calibre Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calibre Mining Corp 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 Calibre Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calibre Mining Corp has no effect on the direction of Harmony Gold i.e., Harmony Gold and Calibre Mining go up and down completely randomly.
Pair Corralation between Harmony Gold and Calibre Mining
Assuming the 90 days horizon Harmony Gold Mining is expected to under-perform the Calibre Mining. In addition to that, Harmony Gold is 1.27 times more volatile than Calibre Mining Corp. It trades about -0.21 of its total potential returns per unit of risk. Calibre Mining Corp is currently generating about 0.0 per unit of volatility. If you would invest 171.00 in Calibre Mining Corp on August 31, 2024 and sell it today you would lose (1.00) from holding Calibre Mining Corp or give up 0.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. Calibre Mining Corp
Performance |
| Timeline |
| Harmony Gold Mining |
| Calibre Mining Corp |
Harmony Gold and Calibre Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Calibre Mining
The main advantage of trading using opposite Harmony Gold and Calibre Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Calibre Mining 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 Calibre Mining will offset losses from the drop in Calibre Mining's long position.| Harmony Gold vs. ZIJIN MINH UNSPADR20 | Harmony Gold vs. Superior Plus Corp | Harmony Gold vs. NMI Holdings | Harmony Gold vs. Origin Agritech |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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