Correlation Between Harmony Gold and WELLS
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By analyzing existing cross correlation between Harmony Gold Mining and WELLS FARGO NEW, you can compare the effects of market volatilities on Harmony Gold and WELLS 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 WELLS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and WELLS.
Diversification Opportunities for Harmony Gold and WELLS
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Harmony and WELLS is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and WELLS FARGO NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WELLS FARGO 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 WELLS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WELLS FARGO NEW has no effect on the direction of Harmony Gold i.e., Harmony Gold and WELLS go up and down completely randomly.
Pair Corralation between Harmony Gold and WELLS
Assuming the 90 days horizon Harmony Gold Mining is expected to generate 3.47 times more return on investment than WELLS. However, Harmony Gold is 3.47 times more volatile than WELLS FARGO NEW. It trades about 0.03 of its potential returns per unit of risk. WELLS FARGO NEW is currently generating about 0.0 per unit of risk. If you would invest 900.00 in Harmony Gold Mining on September 3, 2024 and sell it today you would earn a total of 50.00 from holding Harmony Gold Mining or generate 5.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.31% |
| Values | Daily Returns |
Harmony Gold Mining vs. WELLS FARGO NEW
Performance |
| Timeline |
| Harmony Gold Mining |
| WELLS FARGO NEW |
Harmony Gold and WELLS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and WELLS
The main advantage of trading using opposite Harmony Gold and WELLS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, WELLS 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 WELLS will offset losses from the drop in WELLS's long position.| Harmony Gold vs. Harmony Gold Mining | Harmony Gold vs. SPACE | Harmony Gold vs. T Rowe Price | Harmony Gold vs. Ampleforth |
| WELLS vs. GE Vernova LLC | WELLS vs. Kenon Holdings | WELLS vs. Antero Midstream Partners | WELLS vs. Transportadora de Gas |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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