Correlation Between Harmony Gold and Celulosa Argentina
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Celulosa Argentina 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 Celulosa Argentina 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 Celulosa Argentina SA, you can compare the effects of market volatilities on Harmony Gold and Celulosa Argentina 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 Celulosa Argentina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Celulosa Argentina.
Diversification Opportunities for Harmony Gold and Celulosa Argentina
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Harmony and Celulosa is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Celulosa Argentina SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celulosa Argentina 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 Celulosa Argentina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celulosa Argentina has no effect on the direction of Harmony Gold i.e., Harmony Gold and Celulosa Argentina go up and down completely randomly.
Pair Corralation between Harmony Gold and Celulosa Argentina
If you would invest 988,000 in Harmony Gold Mining on October 24, 2024 and sell it today you would earn a total of 214,500 from holding Harmony Gold Mining or generate 21.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Harmony Gold Mining vs. Celulosa Argentina SA
Performance |
| Timeline |
| Harmony Gold Mining |
| Celulosa Argentina |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Harmony Gold and Celulosa Argentina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Celulosa Argentina
The main advantage of trading using opposite Harmony Gold and Celulosa Argentina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Celulosa Argentina 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 Celulosa Argentina will offset losses from the drop in Celulosa Argentina's long position.| Harmony Gold vs. United States Steel | Harmony Gold vs. Transportadora de Gas | Harmony Gold vs. Agrometal SAI | Harmony Gold vs. Telecom Argentina |
| Celulosa Argentina vs. Transportadora de Gas | Celulosa Argentina vs. Agrometal SAI | Celulosa Argentina vs. Compania de Transporte | Celulosa Argentina vs. United States Steel |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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