Correlation Between Harmony Gold and Xunlei
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Xunlei 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 Xunlei 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 Xunlei Ltd Adr, you can compare the effects of market volatilities on Harmony Gold and Xunlei 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 Xunlei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Xunlei.
Diversification Opportunities for Harmony Gold and Xunlei
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Harmony and Xunlei is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Xunlei Ltd Adr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xunlei Ltd Adr 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 Xunlei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xunlei Ltd Adr has no effect on the direction of Harmony Gold i.e., Harmony Gold and Xunlei go up and down completely randomly.
Pair Corralation between Harmony Gold and Xunlei
Assuming the 90 days horizon Harmony Gold Mining is expected to under-perform the Xunlei. In addition to that, Harmony Gold is 1.2 times more volatile than Xunlei Ltd Adr. It trades about -0.22 of its total potential returns per unit of risk. Xunlei Ltd Adr is currently generating about 0.06 per unit of volatility. If you would invest 191.00 in Xunlei Ltd Adr on September 2, 2024 and sell it today you would earn a total of 7.00 from holding Xunlei Ltd Adr or generate 3.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. Xunlei Ltd Adr
Performance |
| Timeline |
| Harmony Gold Mining |
| Xunlei Ltd Adr |
Harmony Gold and Xunlei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Xunlei
The main advantage of trading using opposite Harmony Gold and Xunlei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Xunlei 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 Xunlei will offset losses from the drop in Xunlei's long position.| Harmony Gold vs. Aurion Resources | Harmony Gold vs. Rio2 Limited | Harmony Gold vs. Palamina Corp | Harmony Gold vs. BTU Metals Corp |
| Xunlei vs. Travelzoo | Xunlei vs. Emerald Expositions Events | Xunlei vs. Ziff Davis | Xunlei vs. Direct Digital Holdings |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |