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
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Harmony and Celulosa is 0.01. 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
Assuming the 90 days trading horizon Harmony Gold Mining is expected to under-perform the Celulosa Argentina. In addition to that, Harmony Gold is 1.23 times more volatile than Celulosa Argentina SA. It trades about -0.03 of its total potential returns per unit of risk. Celulosa Argentina SA is currently generating about 0.09 per unit of volatility. If you would invest 90,800 in Celulosa Argentina SA on September 13, 2024 and sell it today you would earn a total of 4,400 from holding Celulosa Argentina SA or generate 4.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. Celulosa Argentina SA
Performance |
| Timeline |
| Harmony Gold Mining |
| Celulosa Argentina |
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. Edesa Holding SA | Harmony Gold vs. Vista Energy, SAB | Harmony Gold vs. United States Steel | Harmony Gold vs. Pfizer Inc |
| Celulosa Argentina vs. Compania de Transporte | Celulosa Argentina vs. Transportadora de Gas | Celulosa Argentina vs. Harmony Gold Mining | Celulosa Argentina vs. Agrometal SAI |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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