Correlation Between Harmony Gold and Radcom
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Radcom 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 Radcom 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 Radcom, you can compare the effects of market volatilities on Harmony Gold and Radcom 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 Radcom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Radcom.
Diversification Opportunities for Harmony Gold and Radcom
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Harmony and Radcom is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Radcom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Radcom 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 Radcom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Radcom has no effect on the direction of Harmony Gold i.e., Harmony Gold and Radcom go up and down completely randomly.
Pair Corralation between Harmony Gold and Radcom
Assuming the 90 days horizon Harmony Gold Mining is expected to under-perform the Radcom. In addition to that, Harmony Gold is 1.16 times more volatile than Radcom. It trades about -0.21 of its total potential returns per unit of risk. Radcom is currently generating about 0.19 per unit of volatility. If you would invest 1,020 in Radcom on August 31, 2024 and sell it today you would earn a total of 165.00 from holding Radcom or generate 16.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. Radcom
Performance |
| Timeline |
| Harmony Gold Mining |
| Radcom |
Harmony Gold and Radcom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Radcom
The main advantage of trading using opposite Harmony Gold and Radcom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Radcom 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 Radcom will offset losses from the drop in Radcom's long position.| Harmony Gold vs. Aurion Resources | Harmony Gold vs. Rio2 Limited | Harmony Gold vs. Palamina Corp | Harmony Gold vs. BTU Metals Corp |
| Radcom vs. Shenandoah Telecommunications Co | Radcom vs. Anterix | Radcom vs. SK Telecom Co | Radcom vs. Liberty Broadband Srs |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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