Correlation Between Harmony Gold and Marimaca Copper
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Marimaca Copper 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 Marimaca Copper 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 Marimaca Copper Corp, you can compare the effects of market volatilities on Harmony Gold and Marimaca Copper 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 Marimaca Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Marimaca Copper.
Diversification Opportunities for Harmony Gold and Marimaca Copper
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Harmony and Marimaca is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Marimaca Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marimaca Copper 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 Marimaca Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marimaca Copper Corp has no effect on the direction of Harmony Gold i.e., Harmony Gold and Marimaca Copper go up and down completely randomly.
Pair Corralation between Harmony Gold and Marimaca Copper
Assuming the 90 days horizon Harmony Gold Mining is expected to generate 1.7 times more return on investment than Marimaca Copper. However, Harmony Gold is 1.7 times more volatile than Marimaca Copper Corp. It trades about 0.22 of its potential returns per unit of risk. Marimaca Copper Corp is currently generating about 0.13 per unit of risk. If you would invest 827.00 in Harmony Gold Mining on November 3, 2024 and sell it today you would earn a total of 122.00 from holding Harmony Gold Mining or generate 14.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. Marimaca Copper Corp
Performance |
| Timeline |
| Harmony Gold Mining |
| Marimaca Copper Corp |
Harmony Gold and Marimaca Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Marimaca Copper
The main advantage of trading using opposite Harmony Gold and Marimaca Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Marimaca Copper 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 Marimaca Copper will offset losses from the drop in Marimaca Copper's long position.| Harmony Gold vs. Fernhill Beverage | Harmony Gold vs. Bridgford Foods | Harmony Gold vs. Grocery Outlet Holding | Harmony Gold vs. Romana Food Brands |
| Marimaca Copper vs. Freeport McMoran Copper Gold | Marimaca Copper vs. Antofagasta PLC | Marimaca Copper vs. First Quantum Minerals | Marimaca Copper vs. Jiangxi Copper |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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