Correlation Between Harmony Gold and Astral Foods
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Astral 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 Astral 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 Astral Foods Limited, you can compare the effects of market volatilities on Harmony Gold and Astral 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 Astral Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Astral Foods.
Diversification Opportunities for Harmony Gold and Astral Foods
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Harmony and Astral is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Astral Foods Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astral Foods Limited 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 Astral Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astral Foods Limited has no effect on the direction of Harmony Gold i.e., Harmony Gold and Astral Foods go up and down completely randomly.
Pair Corralation between Harmony Gold and Astral Foods
Assuming the 90 days horizon Harmony Gold Mining is expected to generate 3.61 times more return on investment than Astral Foods. However, Harmony Gold is 3.61 times more volatile than Astral Foods Limited. It trades about 0.23 of its potential returns per unit of risk. Astral Foods Limited is currently generating about 0.23 per unit of risk. If you would invest 827.00 in Harmony Gold Mining on November 2, 2024 and sell it today you would earn a total of 122.00 from holding Harmony Gold Mining or generate 14.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. Astral Foods Limited
Performance |
| Timeline |
| Harmony Gold Mining |
| Astral Foods Limited |
Harmony Gold and Astral Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Astral Foods
The main advantage of trading using opposite Harmony Gold and Astral Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Astral 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 Astral Foods will offset losses from the drop in Astral Foods' long position.| Harmony Gold vs. Codexis | Harmony Gold vs. Precision Drilling | Harmony Gold vs. Albemarle | Harmony Gold vs. Borr Drilling |
| Astral Foods vs. Austevoll Seafood ASA | Astral Foods vs. Golden Agri Resources | Astral Foods vs. SalMar ASA | Astral Foods vs. Wilmar International |
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.
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