Correlation Between Harmony Gold and Apple
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Apple 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 Apple 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 Apple Inc DRC, you can compare the effects of market volatilities on Harmony Gold and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Apple.
Diversification Opportunities for Harmony Gold and Apple
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Harmony and Apple is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Apple Inc DRC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc DRC 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc DRC has no effect on the direction of Harmony Gold i.e., Harmony Gold and Apple go up and down completely randomly.
Pair Corralation between Harmony Gold and Apple
Assuming the 90 days trading horizon Harmony Gold Mining is expected to generate 0.83 times more return on investment than Apple. However, Harmony Gold Mining is 1.2 times less risky than Apple. It trades about 0.09 of its potential returns per unit of risk. Apple Inc DRC is currently generating about -0.01 per unit of risk. If you would invest 693,800 in Harmony Gold Mining on November 9, 2024 and sell it today you would earn a total of 748,700 from holding Harmony Gold Mining or generate 107.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. Apple Inc DRC
Performance |
| Timeline |
| Harmony Gold Mining |
| Apple Inc DRC |
Harmony Gold and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Apple
The main advantage of trading using opposite Harmony Gold and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| Harmony Gold vs. Compania de Transporte | Harmony Gold vs. United States Steel | Harmony Gold vs. Transportadora de Gas | Harmony Gold vs. Agrometal SAI |
| Apple vs. Compania de Transporte | Apple vs. Harmony Gold Mining | Apple vs. Agrometal SAI | Apple 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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