Correlation Between Harmony Gold and AETNA
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By analyzing existing cross correlation between Harmony Gold Mining and AETNA INC NEW, you can compare the effects of market volatilities on Harmony Gold and AETNA 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 AETNA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and AETNA.
Diversification Opportunities for Harmony Gold and AETNA
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Harmony and AETNA is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and AETNA INC NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AETNA INC NEW 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 AETNA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AETNA INC NEW has no effect on the direction of Harmony Gold i.e., Harmony Gold and AETNA go up and down completely randomly.
Pair Corralation between Harmony Gold and AETNA
Assuming the 90 days horizon Harmony Gold Mining is expected to generate 27.87 times more return on investment than AETNA. However, Harmony Gold is 27.87 times more volatile than AETNA INC NEW. It trades about 0.1 of its potential returns per unit of risk. AETNA INC NEW is currently generating about 0.02 per unit of risk. If you would invest 202.00 in Harmony Gold Mining on August 27, 2024 and sell it today you would earn a total of 748.00 from holding Harmony Gold Mining or generate 370.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 66.87% |
| Values | Daily Returns |
Harmony Gold Mining vs. AETNA INC NEW
Performance |
| Timeline |
| Harmony Gold Mining |
| AETNA INC NEW |
Harmony Gold and AETNA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and AETNA
The main advantage of trading using opposite Harmony Gold and AETNA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, AETNA 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 AETNA will offset losses from the drop in AETNA's long position.| Harmony Gold vs. Neogen | Harmony Gold vs. Merit Medical Systems | Harmony Gold vs. Omni Health | Harmony Gold vs. Hurco Companies |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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