Correlation Between Harmony Gold and Northern Sphere
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Northern Sphere 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 Northern Sphere 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 Northern Sphere Mining, you can compare the effects of market volatilities on Harmony Gold and Northern Sphere 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 Northern Sphere. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Northern Sphere.
Diversification Opportunities for Harmony Gold and Northern Sphere
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Harmony and Northern is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Northern Sphere Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern Sphere Mining 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 Northern Sphere. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern Sphere Mining has no effect on the direction of Harmony Gold i.e., Harmony Gold and Northern Sphere go up and down completely randomly.
Pair Corralation between Harmony Gold and Northern Sphere
If you would invest 0.01 in Northern Sphere Mining on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Northern Sphere Mining or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. Northern Sphere Mining
Performance |
| Timeline |
| Harmony Gold Mining |
| Northern Sphere Mining |
Harmony Gold and Northern Sphere Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Northern Sphere
The main advantage of trading using opposite Harmony Gold and Northern Sphere positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Northern Sphere 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 Northern Sphere will offset losses from the drop in Northern Sphere's long position.| Harmony Gold vs. Aurion Resources | Harmony Gold vs. Rio2 Limited | Harmony Gold vs. Palamina Corp | Harmony Gold vs. BTU Metals Corp |
| Northern Sphere vs. ATT Inc | Northern Sphere vs. Merck Company | Northern Sphere vs. Walt Disney | Northern Sphere vs. Caterpillar |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |