Correlation Between Harmony Gold and BOSTON
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By analyzing existing cross correlation between Harmony Gold Mining and BOSTON PPTYS LTD, you can compare the effects of market volatilities on Harmony Gold and BOSTON 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 BOSTON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and BOSTON.
Diversification Opportunities for Harmony Gold and BOSTON
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Harmony and BOSTON is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and BOSTON PPTYS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOSTON PPTYS LTD 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 BOSTON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOSTON PPTYS LTD has no effect on the direction of Harmony Gold i.e., Harmony Gold and BOSTON go up and down completely randomly.
Pair Corralation between Harmony Gold and BOSTON
Assuming the 90 days horizon Harmony Gold Mining is expected to generate 8.92 times more return on investment than BOSTON. However, Harmony Gold is 8.92 times more volatile than BOSTON PPTYS LTD. It trades about 0.08 of its potential returns per unit of risk. BOSTON PPTYS LTD is currently generating about 0.03 per unit of risk. If you would invest 636.00 in Harmony Gold Mining on September 14, 2024 and sell it today you would earn a total of 314.00 from holding Harmony Gold Mining or generate 49.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 66.42% |
| Values | Daily Returns |
Harmony Gold Mining vs. BOSTON PPTYS LTD
Performance |
| Timeline |
| Harmony Gold Mining |
| BOSTON PPTYS LTD |
Harmony Gold and BOSTON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and BOSTON
The main advantage of trading using opposite Harmony Gold and BOSTON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, BOSTON 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 BOSTON will offset losses from the drop in BOSTON's long position.| Harmony Gold vs. Revival Gold | Harmony Gold vs. Galiano Gold | Harmony Gold vs. US Gold Corp | Harmony Gold vs. HUMANA INC |
| BOSTON vs. Monster Beverage Corp | BOSTON vs. Harmony Gold Mining | BOSTON vs. PepsiCo | BOSTON vs. National Beverage Corp |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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