Correlation Between Harmony Gold and Cimpress
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Cimpress 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 Cimpress 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 Cimpress NV, you can compare the effects of market volatilities on Harmony Gold and Cimpress 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 Cimpress. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Cimpress.
Diversification Opportunities for Harmony Gold and Cimpress
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Harmony and Cimpress is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Cimpress NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cimpress NV 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 Cimpress. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cimpress NV has no effect on the direction of Harmony Gold i.e., Harmony Gold and Cimpress go up and down completely randomly.
Pair Corralation between Harmony Gold and Cimpress
Assuming the 90 days horizon Harmony Gold Mining is expected to under-perform the Cimpress. In addition to that, Harmony Gold is 1.83 times more volatile than Cimpress NV. It trades about -0.22 of its total potential returns per unit of risk. Cimpress NV is currently generating about 0.24 per unit of volatility. If you would invest 7,125 in Cimpress NV on September 2, 2024 and sell it today you would earn a total of 905.00 from holding Cimpress NV or generate 12.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. Cimpress NV
Performance |
| Timeline |
| Harmony Gold Mining |
| Cimpress NV |
Harmony Gold and Cimpress Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Cimpress
The main advantage of trading using opposite Harmony Gold and Cimpress positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Cimpress 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 Cimpress will offset losses from the drop in Cimpress' long position.| Harmony Gold vs. Aurion Resources | Harmony Gold vs. Rio2 Limited | Harmony Gold vs. Palamina Corp | Harmony Gold vs. Grande Portage Resources |
| Cimpress vs. Innovid Corp | Cimpress vs. Deluxe | Cimpress vs. Omnicom Group | Cimpress vs. Emerald Expositions Events |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |