Correlation Between Harmony Gold and Dolphin Entertainment
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Dolphin Entertainment 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 Dolphin Entertainment 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 Dolphin Entertainment, you can compare the effects of market volatilities on Harmony Gold and Dolphin Entertainment 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 Dolphin Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Dolphin Entertainment.
Diversification Opportunities for Harmony Gold and Dolphin Entertainment
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Harmony and Dolphin is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Dolphin Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dolphin Entertainment 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 Dolphin Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dolphin Entertainment has no effect on the direction of Harmony Gold i.e., Harmony Gold and Dolphin Entertainment go up and down completely randomly.
Pair Corralation between Harmony Gold and Dolphin Entertainment
Assuming the 90 days horizon Harmony Gold Mining is expected to under-perform the Dolphin Entertainment. In addition to that, Harmony Gold is 1.3 times more volatile than Dolphin Entertainment. It trades about -0.21 of its total potential returns per unit of risk. Dolphin Entertainment is currently generating about -0.16 per unit of volatility. If you would invest 125.00 in Dolphin Entertainment on August 30, 2024 and sell it today you would lose (16.00) from holding Dolphin Entertainment or give up 12.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Harmony Gold Mining vs. Dolphin Entertainment
Performance |
| Timeline |
| Harmony Gold Mining |
| Dolphin Entertainment |
Harmony Gold and Dolphin Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Dolphin Entertainment
The main advantage of trading using opposite Harmony Gold and Dolphin Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Dolphin Entertainment 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 Dolphin Entertainment will offset losses from the drop in Dolphin Entertainment's long position.| Harmony Gold vs. SNDL Inc | Harmony Gold vs. Tyson Foods | Harmony Gold vs. Century Aluminum | Harmony Gold vs. Olympic Steel |
| Dolphin Entertainment vs. Hall of Fame | Dolphin Entertainment vs. Wisekey International Holding | Dolphin Entertainment vs. Oriental Culture Holding |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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