Correlation Between Harmony Gold and US Global
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and US Global 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 US Global 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 US Global Investors, you can compare the effects of market volatilities on Harmony Gold and US Global 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 US Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and US Global.
Diversification Opportunities for Harmony Gold and US Global
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Harmony and GROW is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and US Global Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Global Investors 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 US Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Global Investors has no effect on the direction of Harmony Gold i.e., Harmony Gold and US Global go up and down completely randomly.
Pair Corralation between Harmony Gold and US Global
Assuming the 90 days horizon Harmony Gold Mining is expected to under-perform the US Global. In addition to that, Harmony Gold is 2.93 times more volatile than US Global Investors. It trades about -0.22 of its total potential returns per unit of risk. US Global Investors is currently generating about -0.03 per unit of volatility. If you would invest 247.00 in US Global Investors on September 2, 2024 and sell it today you would lose (3.00) from holding US Global Investors or give up 1.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. US Global Investors
Performance |
| Timeline |
| Harmony Gold Mining |
| US Global Investors |
Harmony Gold and US Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and US Global
The main advantage of trading using opposite Harmony Gold and US Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, US Global 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 US Global will offset losses from the drop in US Global's long position.| Harmony Gold vs. Aurion Resources | Harmony Gold vs. Rio2 Limited | Harmony Gold vs. Palamina Corp | Harmony Gold vs. Grande Portage Resources |
| US Global vs. Gladstone Investment | US Global vs. PennantPark Floating Rate | US Global vs. Horizon Technology Finance | US Global vs. Stellus Capital Investment |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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