Correlation Between Harmony Gold and Bed Bath
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Bed Bath 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 Bed Bath 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 Bed Bath Beyond, you can compare the effects of market volatilities on Harmony Gold and Bed Bath 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 Bed Bath. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Bed Bath.
Diversification Opportunities for Harmony Gold and Bed Bath
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Harmony and Bed is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Bed Bath Beyond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bed Bath Beyond 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 Bed Bath. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bed Bath Beyond has no effect on the direction of Harmony Gold i.e., Harmony Gold and Bed Bath go up and down completely randomly.
Pair Corralation between Harmony Gold and Bed Bath
If you would invest (100.00) in Bed Bath Beyond on November 3, 2024 and sell it today you would earn a total of 100.00 from holding Bed Bath Beyond or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. Bed Bath Beyond
Performance |
| Timeline |
| Harmony Gold Mining |
| Bed Bath Beyond |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Harmony Gold and Bed Bath Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Bed Bath
The main advantage of trading using opposite Harmony Gold and Bed Bath positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Bed Bath 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 Bed Bath will offset losses from the drop in Bed Bath's long position.| Harmony Gold vs. Fernhill Beverage | Harmony Gold vs. Bridgford Foods | Harmony Gold vs. Grocery Outlet Holding | Harmony Gold vs. Romana Food Brands |
| Bed Bath vs. Avient Corp | Bed Bath vs. Bowhead Specialty Holdings | Bed Bath vs. Alignment Healthcare LLC | Bed Bath vs. Luxfer Holdings PLC |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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