Correlation Between Harmony Gold and CAVA Group,
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and CAVA Group, 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 CAVA Group, 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 CAVA Group,, you can compare the effects of market volatilities on Harmony Gold and CAVA Group, 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 CAVA Group,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and CAVA Group,.
Diversification Opportunities for Harmony Gold and CAVA Group,
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Harmony and CAVA is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and CAVA Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAVA Group, 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 CAVA Group,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAVA Group, has no effect on the direction of Harmony Gold i.e., Harmony Gold and CAVA Group, go up and down completely randomly.
Pair Corralation between Harmony Gold and CAVA Group,
Assuming the 90 days horizon Harmony Gold Mining is expected to under-perform the CAVA Group,. In addition to that, Harmony Gold is 1.75 times more volatile than CAVA Group,. It trades about -0.21 of its total potential returns per unit of risk. CAVA Group, is currently generating about 0.13 per unit of volatility. If you would invest 13,609 in CAVA Group, on August 26, 2024 and sell it today you would earn a total of 891.00 from holding CAVA Group, or generate 6.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. CAVA Group,
Performance |
| Timeline |
| Harmony Gold Mining |
| CAVA Group, |
Harmony Gold and CAVA Group, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and CAVA Group,
The main advantage of trading using opposite Harmony Gold and CAVA Group, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, CAVA Group, 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 CAVA Group, will offset losses from the drop in CAVA Group,'s long position.| Harmony Gold vs. Zoom Video Communications | Harmony Gold vs. Summit Environmental | Harmony Gold vs. Sanyo Special Steel | Harmony Gold vs. United States Steel |
| CAVA Group, vs. Nomura Holdings ADR | CAVA Group, vs. Harmony Gold Mining | CAVA Group, vs. Sabra Healthcare REIT | CAVA Group, vs. Western Acquisition Ventures |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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