Correlation Between Harmony Gold and Franklin Wireless
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Franklin Wireless 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 Franklin Wireless 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 Franklin Wireless Corp, you can compare the effects of market volatilities on Harmony Gold and Franklin Wireless 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 Franklin Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Franklin Wireless.
Diversification Opportunities for Harmony Gold and Franklin Wireless
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Harmony and Franklin is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Franklin Wireless Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Wireless Corp 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 Franklin Wireless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Wireless Corp has no effect on the direction of Harmony Gold i.e., Harmony Gold and Franklin Wireless go up and down completely randomly.
Pair Corralation between Harmony Gold and Franklin Wireless
Assuming the 90 days horizon Harmony Gold Mining is expected to generate 1.65 times more return on investment than Franklin Wireless. However, Harmony Gold is 1.65 times more volatile than Franklin Wireless Corp. It trades about 0.09 of its potential returns per unit of risk. Franklin Wireless Corp is currently generating about 0.0 per unit of risk. If you would invest 372.00 in Harmony Gold Mining on November 5, 2024 and sell it today you would earn a total of 577.00 from holding Harmony Gold Mining or generate 155.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 65.38% |
| Values | Daily Returns |
Harmony Gold Mining vs. Franklin Wireless Corp
Performance |
| Timeline |
| Harmony Gold Mining |
| Franklin Wireless Corp |
Harmony Gold and Franklin Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Franklin Wireless
The main advantage of trading using opposite Harmony Gold and Franklin Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Franklin Wireless 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 Franklin Wireless will offset losses from the drop in Franklin Wireless' long position.| Harmony Gold vs. Westrock Coffee | Harmony Gold vs. Parker Hannifin | Harmony Gold vs. Wingstop | Harmony Gold vs. Dine Brands Global |
| Franklin Wireless vs. Wialan Technologies | Franklin Wireless vs. TPT Global Tech | Franklin Wireless vs. Moving iMage Technologies | Franklin Wireless vs. Comtech Telecommunications Corp |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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