Correlation Between Harmony Gold and Quantum Foods
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Quantum Foods 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 Quantum Foods 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 Quantum Foods Holdings, you can compare the effects of market volatilities on Harmony Gold and Quantum Foods 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 Quantum Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Quantum Foods.
Diversification Opportunities for Harmony Gold and Quantum Foods
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Harmony and Quantum is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Quantum Foods Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quantum Foods 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 Quantum Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quantum Foods Holdings has no effect on the direction of Harmony Gold i.e., Harmony Gold and Quantum Foods go up and down completely randomly.
Pair Corralation between Harmony Gold and Quantum Foods
Assuming the 90 days trading horizon Harmony Gold Mining is expected to generate 0.43 times more return on investment than Quantum Foods. However, Harmony Gold Mining is 2.32 times less risky than Quantum Foods. It trades about -0.19 of its potential returns per unit of risk. Quantum Foods Holdings is currently generating about -0.1 per unit of risk. If you would invest 1,887,600 in Harmony Gold Mining on September 1, 2024 and sell it today you would lose (237,600) from holding Harmony Gold Mining or give up 12.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. Quantum Foods Holdings
Performance |
| Timeline |
| Harmony Gold Mining |
| Quantum Foods Holdings |
Harmony Gold and Quantum Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Quantum Foods
The main advantage of trading using opposite Harmony Gold and Quantum Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Quantum Foods 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 Quantum Foods will offset losses from the drop in Quantum Foods' long position.| Harmony Gold vs. Allied Electronics | Harmony Gold vs. Afine Investments | Harmony Gold vs. Astoria Investments | Harmony Gold vs. Master Drilling Group |
| Quantum Foods vs. Centaur Bci Balanced | Quantum Foods vs. Sabvest Capital | Quantum Foods vs. AfricaRhodium ETF | Quantum Foods vs. Indexco Limited |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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