Correlation Between Harmony Gold and ENN Energy
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and ENN Energy 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 ENN Energy 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 ENN Energy Holdings, you can compare the effects of market volatilities on Harmony Gold and ENN Energy 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 ENN Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and ENN Energy.
Diversification Opportunities for Harmony Gold and ENN Energy
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Harmony and ENN is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and ENN Energy Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENN Energy Holdings 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 ENN Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENN Energy Holdings has no effect on the direction of Harmony Gold i.e., Harmony Gold and ENN Energy go up and down completely randomly.
Pair Corralation between Harmony Gold and ENN Energy
Assuming the 90 days horizon Harmony Gold Mining is expected to generate 0.92 times more return on investment than ENN Energy. However, Harmony Gold Mining is 1.08 times less risky than ENN Energy. It trades about 0.08 of its potential returns per unit of risk. ENN Energy Holdings is currently generating about 0.03 per unit of risk. If you would invest 400.00 in Harmony Gold Mining on September 12, 2024 and sell it today you would earn a total of 455.00 from holding Harmony Gold Mining or generate 113.75% 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. ENN Energy Holdings
Performance |
| Timeline |
| Harmony Gold Mining |
| ENN Energy Holdings |
Harmony Gold and ENN Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and ENN Energy
The main advantage of trading using opposite Harmony Gold and ENN Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, ENN Energy 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 ENN Energy will offset losses from the drop in ENN Energy'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 |
| ENN Energy vs. COLUMBIA SPORTSWEAR | ENN Energy vs. InPlay Oil Corp | ENN Energy vs. Universal Display | ENN Energy vs. JD SPORTS FASH |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |