Correlation Between Harmony Gold and Kansai Electric
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Kansai Electric 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 Kansai Electric 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 The Kansai Electric, you can compare the effects of market volatilities on Harmony Gold and Kansai Electric 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 Kansai Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Kansai Electric.
Diversification Opportunities for Harmony Gold and Kansai Electric
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Harmony and Kansai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and The Kansai Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kansai Electric 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 Kansai Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kansai Electric has no effect on the direction of Harmony Gold i.e., Harmony Gold and Kansai Electric go up and down completely randomly.
Pair Corralation between Harmony Gold and Kansai Electric
If you would invest 880.00 in Harmony Gold Mining on September 2, 2024 and sell it today you would earn a total of 70.00 from holding Harmony Gold Mining or generate 7.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 65.32% |
| Values | Daily Returns |
Harmony Gold Mining vs. The Kansai Electric
Performance |
| Timeline |
| Harmony Gold Mining |
| Kansai Electric |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Harmony Gold and Kansai Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Kansai Electric
The main advantage of trading using opposite Harmony Gold and Kansai Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Kansai Electric 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 Kansai Electric will offset losses from the drop in Kansai Electric's long position.| Harmony Gold vs. Aurion Resources | Harmony Gold vs. Rio2 Limited | Harmony Gold vs. Palamina Corp | Harmony Gold vs. Grande Portage Resources |
| Kansai Electric vs. Simon Property Group | Kansai Electric vs. Meiwu Technology Co | Kansai Electric vs. Weyco Group | Kansai Electric vs. Edgewell Personal Care |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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