Correlation Between Harmony Gold and Aurion Resources
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Aurion Resources 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 Aurion Resources 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 Aurion Resources, you can compare the effects of market volatilities on Harmony Gold and Aurion Resources 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 Aurion Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Aurion Resources.
Diversification Opportunities for Harmony Gold and Aurion Resources
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Harmony and Aurion is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Aurion Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurion Resources 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 Aurion Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurion Resources has no effect on the direction of Harmony Gold i.e., Harmony Gold and Aurion Resources go up and down completely randomly.
Pair Corralation between Harmony Gold and Aurion Resources
Assuming the 90 days horizon Harmony Gold Mining is expected to generate 0.71 times more return on investment than Aurion Resources. However, Harmony Gold Mining is 1.41 times less risky than Aurion Resources. It trades about 0.04 of its potential returns per unit of risk. Aurion Resources is currently generating about -0.01 per unit of risk. If you would invest 875.00 in Harmony Gold Mining on August 29, 2024 and sell it today you would earn a total of 75.00 from holding Harmony Gold Mining or generate 8.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Harmony Gold Mining vs. Aurion Resources
Performance |
| Timeline |
| Harmony Gold Mining |
| Aurion Resources |
Harmony Gold and Aurion Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Aurion Resources
The main advantage of trading using opposite Harmony Gold and Aurion Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Aurion Resources 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 Aurion Resources will offset losses from the drop in Aurion Resources' long position.| Harmony Gold vs. Vertiv Holdings Co | Harmony Gold vs. Nasdaq Inc | Harmony Gold vs. McDonalds | Harmony Gold vs. Walmart |
| Aurion Resources vs. Minnova Corp | Aurion Resources vs. Argo Gold | Aurion Resources vs. Advance Gold Corp | Aurion Resources vs. Blue Star Gold |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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