Correlation Between Harmony Gold and Lipocine
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Lipocine 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 Lipocine 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 Lipocine, you can compare the effects of market volatilities on Harmony Gold and Lipocine 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 Lipocine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Lipocine.
Diversification Opportunities for Harmony Gold and Lipocine
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Harmony and Lipocine is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Lipocine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipocine 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 Lipocine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lipocine has no effect on the direction of Harmony Gold i.e., Harmony Gold and Lipocine go up and down completely randomly.
Pair Corralation between Harmony Gold and Lipocine
Assuming the 90 days horizon Harmony Gold is expected to generate 1.4 times less return on investment than Lipocine. But when comparing it to its historical volatility, Harmony Gold Mining is 1.52 times less risky than Lipocine. It trades about 0.08 of its potential returns per unit of risk. Lipocine is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 263.00 in Lipocine on August 27, 2024 and sell it today you would earn a total of 252.00 from holding Lipocine or generate 95.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 66.94% |
| Values | Daily Returns |
Harmony Gold Mining vs. Lipocine
Performance |
| Timeline |
| Harmony Gold Mining |
| Lipocine |
Harmony Gold and Lipocine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Lipocine
The main advantage of trading using opposite Harmony Gold and Lipocine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Lipocine 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 Lipocine will offset losses from the drop in Lipocine's long position.| Harmony Gold vs. Neogen | Harmony Gold vs. Merit Medical Systems | Harmony Gold vs. Omni Health | Harmony Gold vs. Hurco Companies |
| Lipocine vs. Capricor Therapeutics | Lipocine vs. Soleno Therapeutics | Lipocine vs. Bio Path Holdings | Lipocine vs. Moleculin Biotech |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |