Correlation Between Harmony Gold and Shengkai Innovations
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Shengkai Innovations 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 Shengkai Innovations 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 Shengkai Innovations, you can compare the effects of market volatilities on Harmony Gold and Shengkai Innovations 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 Shengkai Innovations. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Shengkai Innovations.
Diversification Opportunities for Harmony Gold and Shengkai Innovations
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Harmony and Shengkai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Shengkai Innovations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengkai Innovations 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 Shengkai Innovations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengkai Innovations has no effect on the direction of Harmony Gold i.e., Harmony Gold and Shengkai Innovations go up and down completely randomly.
Pair Corralation between Harmony Gold and Shengkai Innovations
If you would invest 475.00 in Harmony Gold Mining on September 12, 2024 and sell it today you would earn a total of 475.00 from holding Harmony Gold Mining or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.55% |
| Values | Daily Returns |
Harmony Gold Mining vs. Shengkai Innovations
Performance |
| Timeline |
| Harmony Gold Mining |
| Shengkai Innovations |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Harmony Gold and Shengkai Innovations Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Shengkai Innovations
The main advantage of trading using opposite Harmony Gold and Shengkai Innovations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Shengkai Innovations 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 Shengkai Innovations will offset losses from the drop in Shengkai Innovations' long position.| Harmony Gold vs. Revival Gold | Harmony Gold vs. Galiano Gold | Harmony Gold vs. US Gold Corp | Harmony Gold vs. HUMANA INC |
| Shengkai Innovations vs. Lion One Metals | Shengkai Innovations vs. Franklin Credit Management | Shengkai Innovations vs. Harmony Gold Mining | Shengkai Innovations vs. Royalty Management Holding |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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