Correlation Between Harmony Gold and INTERNATIONAL
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By analyzing existing cross correlation between Harmony Gold Mining and INTERNATIONAL BUSINESS MACHS, you can compare the effects of market volatilities on Harmony Gold and INTERNATIONAL 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 INTERNATIONAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and INTERNATIONAL.
Diversification Opportunities for Harmony Gold and INTERNATIONAL
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Harmony and INTERNATIONAL is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and INTERNATIONAL BUSINESS MACHS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERNATIONAL BUSINESS 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 INTERNATIONAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTERNATIONAL BUSINESS has no effect on the direction of Harmony Gold i.e., Harmony Gold and INTERNATIONAL go up and down completely randomly.
Pair Corralation between Harmony Gold and INTERNATIONAL
Assuming the 90 days horizon Harmony Gold Mining is expected to under-perform the INTERNATIONAL. In addition to that, Harmony Gold is 3.66 times more volatile than INTERNATIONAL BUSINESS MACHS. It trades about -0.21 of its total potential returns per unit of risk. INTERNATIONAL BUSINESS MACHS is currently generating about -0.17 per unit of volatility. If you would invest 10,727 in INTERNATIONAL BUSINESS MACHS on August 25, 2024 and sell it today you would lose (487.00) from holding INTERNATIONAL BUSINESS MACHS or give up 4.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. INTERNATIONAL BUSINESS MACHS
Performance |
| Timeline |
| Harmony Gold Mining |
| INTERNATIONAL BUSINESS |
Harmony Gold and INTERNATIONAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and INTERNATIONAL
The main advantage of trading using opposite Harmony Gold and INTERNATIONAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, INTERNATIONAL 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 INTERNATIONAL will offset losses from the drop in INTERNATIONAL's long position.| Harmony Gold vs. Aurion Resources | Harmony Gold vs. Liberty Gold Corp | Harmony Gold vs. Rio2 Limited | Harmony Gold vs. Orezone Gold Corp |
| INTERNATIONAL vs. RLX Technology | INTERNATIONAL vs. Scandinavian Tobacco Group | INTERNATIONAL vs. Paiute Oil Mining | INTERNATIONAL 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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