Correlation Between Harmony Gold and Autopistas Del
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Autopistas Del 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 Autopistas Del 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 Autopistas del Sol, you can compare the effects of market volatilities on Harmony Gold and Autopistas Del 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 Autopistas Del. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Autopistas Del.
Diversification Opportunities for Harmony Gold and Autopistas Del
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Harmony and Autopistas is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Autopistas del Sol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autopistas del Sol 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 Autopistas Del. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autopistas del Sol has no effect on the direction of Harmony Gold i.e., Harmony Gold and Autopistas Del go up and down completely randomly.
Pair Corralation between Harmony Gold and Autopistas Del
Assuming the 90 days trading horizon Harmony Gold Mining is expected to generate 0.93 times more return on investment than Autopistas Del. However, Harmony Gold Mining is 1.07 times less risky than Autopistas Del. It trades about 0.66 of its potential returns per unit of risk. Autopistas del Sol is currently generating about -0.24 per unit of risk. If you would invest 987,000 in Harmony Gold Mining on November 2, 2024 and sell it today you would earn a total of 350,500 from holding Harmony Gold Mining or generate 35.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Harmony Gold Mining vs. Autopistas del Sol
Performance |
| Timeline |
| Harmony Gold Mining |
| Autopistas del Sol |
Harmony Gold and Autopistas Del Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Autopistas Del
The main advantage of trading using opposite Harmony Gold and Autopistas Del positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Autopistas Del 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 Autopistas Del will offset losses from the drop in Autopistas Del's long position.| Harmony Gold vs. Telecom Argentina | Harmony Gold vs. Transportadora de Gas | Harmony Gold vs. Agrometal SAI |
| Autopistas Del vs. Transportadora de Gas | Autopistas Del vs. Compania de Transporte | Autopistas Del vs. Agrometal SAI | Autopistas Del 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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