Correlation Between Harmony Gold and Mobix Labs
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Mobix Labs 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 Mobix Labs 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 Mobix Labs, you can compare the effects of market volatilities on Harmony Gold and Mobix Labs 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 Mobix Labs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Mobix Labs.
Diversification Opportunities for Harmony Gold and Mobix Labs
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Harmony and Mobix is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Mobix Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobix Labs 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 Mobix Labs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobix Labs has no effect on the direction of Harmony Gold i.e., Harmony Gold and Mobix Labs go up and down completely randomly.
Pair Corralation between Harmony Gold and Mobix Labs
Assuming the 90 days horizon Harmony Gold is expected to generate 7.52 times less return on investment than Mobix Labs. But when comparing it to its historical volatility, Harmony Gold Mining is 8.36 times less risky than Mobix Labs. It trades about 0.1 of its potential returns per unit of risk. Mobix Labs is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 10.00 in Mobix Labs on September 3, 2024 and sell it today you would earn a total of 6.00 from holding Mobix Labs or generate 60.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.8% |
| Values | Daily Returns |
Harmony Gold Mining vs. Mobix Labs
Performance |
| Timeline |
| Harmony Gold Mining |
| Mobix Labs |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Harmony Gold and Mobix Labs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Mobix Labs
The main advantage of trading using opposite Harmony Gold and Mobix Labs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Mobix Labs 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 Mobix Labs will offset losses from the drop in Mobix Labs' long position.| Harmony Gold vs. Harmony Gold Mining | Harmony Gold vs. SPACE | Harmony Gold vs. T Rowe Price | Harmony Gold vs. Ampleforth |
| Mobix Labs vs. Braskem SA Class | Mobix Labs vs. Ecovyst | Mobix Labs vs. Zoom Video Communications | Mobix Labs vs. Harmony Gold Mining |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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