Correlation Between Harmony Gold and Bolsas Y
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Bolsas Y 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 Bolsas Y 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 Bolsas y Mercados, you can compare the effects of market volatilities on Harmony Gold and Bolsas Y 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 Bolsas Y. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Bolsas Y.
Diversification Opportunities for Harmony Gold and Bolsas Y
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Harmony and Bolsas is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Bolsas y Mercados in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bolsas y Mercados 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 Bolsas Y. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bolsas y Mercados has no effect on the direction of Harmony Gold i.e., Harmony Gold and Bolsas Y go up and down completely randomly.
Pair Corralation between Harmony Gold and Bolsas Y
Assuming the 90 days trading horizon Harmony Gold Mining is expected to generate 0.79 times more return on investment than Bolsas Y. However, Harmony Gold Mining is 1.27 times less risky than Bolsas Y. It trades about 0.14 of its potential returns per unit of risk. Bolsas y Mercados is currently generating about 0.06 per unit of risk. If you would invest 113,900 in Harmony Gold Mining on August 25, 2024 and sell it today you would earn a total of 956,100 from holding Harmony Gold Mining or generate 839.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. Bolsas y Mercados
Performance |
| Timeline |
| Harmony Gold Mining |
| Bolsas y Mercados |
Harmony Gold and Bolsas Y Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Bolsas Y
The main advantage of trading using opposite Harmony Gold and Bolsas Y positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Bolsas Y 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 Bolsas Y will offset losses from the drop in Bolsas Y's long position.| Harmony Gold vs. Telecom Argentina | Harmony Gold vs. Transportadora de Gas | Harmony Gold vs. Agrometal SAI | Harmony Gold vs. United States Steel |
| Bolsas Y vs. Transportadora de Gas | Bolsas Y vs. Agrometal SAI | Bolsas Y vs. Compania de Transporte | Bolsas Y 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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