Correlation Between Harmony Gold and China Tontine
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and China Tontine 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 China Tontine 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 China Tontine Wines, you can compare the effects of market volatilities on Harmony Gold and China Tontine 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 China Tontine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and China Tontine.
Diversification Opportunities for Harmony Gold and China Tontine
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Harmony and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and China Tontine Wines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Tontine Wines 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 China Tontine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Tontine Wines has no effect on the direction of Harmony Gold i.e., Harmony Gold and China Tontine go up and down completely randomly.
Pair Corralation between Harmony Gold and China Tontine
If you would invest 827.00 in Harmony Gold Mining on November 6, 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 | Flat |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Harmony Gold Mining vs. China Tontine Wines
Performance |
| Timeline |
| Harmony Gold Mining |
| China Tontine Wines |
Harmony Gold and China Tontine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and China Tontine
The main advantage of trading using opposite Harmony Gold and China Tontine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, China Tontine 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 China Tontine will offset losses from the drop in China Tontine's long position.| Harmony Gold vs. Centessa Pharmaceuticals PLC | Harmony Gold vs. Western Digital | Harmony Gold vs. Life Time Group | Harmony Gold vs. ANTA Sports Products |
| China Tontine vs. Constellation Brands Class | China Tontine vs. PepsiCo | China Tontine vs. ScanSource | China Tontine vs. Acumen Pharmaceuticals |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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