Correlation Between Harmony Gold and Banpu PCL
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Banpu PCL 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 Banpu PCL 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 Banpu PCL ADR, you can compare the effects of market volatilities on Harmony Gold and Banpu PCL 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 Banpu PCL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Banpu PCL.
Diversification Opportunities for Harmony Gold and Banpu PCL
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Harmony and Banpu is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Banpu PCL ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banpu PCL ADR 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 Banpu PCL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banpu PCL ADR has no effect on the direction of Harmony Gold i.e., Harmony Gold and Banpu PCL go up and down completely randomly.
Pair Corralation between Harmony Gold and Banpu PCL
If you would invest 197.00 in Banpu PCL ADR on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Banpu PCL ADR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Harmony Gold Mining vs. Banpu PCL ADR
Performance |
| Timeline |
| Harmony Gold Mining |
| Banpu PCL ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Harmony Gold and Banpu PCL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Banpu PCL
The main advantage of trading using opposite Harmony Gold and Banpu PCL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Banpu PCL 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 Banpu PCL will offset losses from the drop in Banpu PCL's long position.| Harmony Gold vs. Aurion Resources | Harmony Gold vs. Rio2 Limited | Harmony Gold vs. Palamina Corp | Harmony Gold vs. BTU Metals Corp |
| Banpu PCL vs. TFI International | Banpu PCL vs. Maiden Holdings | Banpu PCL vs. Employers Holdings | Banpu PCL vs. Tencent Music Entertainment |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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