Correlation Between Harmony Gold and Golden Matrix
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Golden Matrix 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 Golden Matrix 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 Golden Matrix Group, you can compare the effects of market volatilities on Harmony Gold and Golden Matrix 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 Golden Matrix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Golden Matrix.
Diversification Opportunities for Harmony Gold and Golden Matrix
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Harmony and Golden is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Golden Matrix Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Matrix 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 Golden Matrix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Matrix Group has no effect on the direction of Harmony Gold i.e., Harmony Gold and Golden Matrix go up and down completely randomly.
Pair Corralation between Harmony Gold and Golden Matrix
Assuming the 90 days horizon Harmony Gold Mining is expected to generate 1.03 times more return on investment than Golden Matrix. However, Harmony Gold is 1.03 times more volatile than Golden Matrix Group. It trades about 0.1 of its potential returns per unit of risk. Golden Matrix Group is currently generating about 0.03 per unit of risk. If you would invest 202.00 in Harmony Gold Mining on August 26, 2024 and sell it today you would earn a total of 748.00 from holding Harmony Gold Mining or generate 370.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 65.59% |
| Values | Daily Returns |
Harmony Gold Mining vs. Golden Matrix Group
Performance |
| Timeline |
| Harmony Gold Mining |
| Golden Matrix Group |
Harmony Gold and Golden Matrix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Golden Matrix
The main advantage of trading using opposite Harmony Gold and Golden Matrix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Golden Matrix 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 Golden Matrix will offset losses from the drop in Golden Matrix's long position.| Harmony Gold vs. Aurion Resources | Harmony Gold vs. Liberty Gold Corp | Harmony Gold vs. Orezone Gold Corp | Harmony Gold vs. Radisson Mining Resources |
| Golden Matrix vs. AEye Inc | Golden Matrix vs. Arqit Quantum Warrants | Golden Matrix vs. Xos Equity Warrants |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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