Correlation Between Harmony Gold and Garovaglio
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Garovaglio 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 Garovaglio 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 Garovaglio y Zorraquin, you can compare the effects of market volatilities on Harmony Gold and Garovaglio 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 Garovaglio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Garovaglio.
Diversification Opportunities for Harmony Gold and Garovaglio
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Harmony and Garovaglio is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Garovaglio y Zorraquin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Garovaglio y Zorraquin 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 Garovaglio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Garovaglio y Zorraquin has no effect on the direction of Harmony Gold i.e., Harmony Gold and Garovaglio go up and down completely randomly.
Pair Corralation between Harmony Gold and Garovaglio
Assuming the 90 days trading horizon Harmony Gold Mining is expected to generate 0.48 times more return on investment than Garovaglio. However, Harmony Gold Mining is 2.08 times less risky than Garovaglio. It trades about 0.59 of its potential returns per unit of risk. Garovaglio y Zorraquin is currently generating about 0.16 per unit of risk. If you would invest 987,000 in Harmony Gold Mining on November 3, 2024 and sell it today you would earn a total of 335,500 from holding Harmony Gold Mining or generate 33.99% 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. Garovaglio y Zorraquin
Performance |
| Timeline |
| Harmony Gold Mining |
| Garovaglio y Zorraquin |
Harmony Gold and Garovaglio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Garovaglio
The main advantage of trading using opposite Harmony Gold and Garovaglio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Garovaglio 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 Garovaglio will offset losses from the drop in Garovaglio's long position.| Harmony Gold vs. Agrometal SAI | Harmony Gold vs. Compania de Transporte | Harmony Gold vs. Transportadora de Gas | Harmony Gold vs. Telecom Argentina |
| Garovaglio vs. Agrometal SAI | Garovaglio vs. Compania de Transporte | Garovaglio vs. Harmony Gold Mining | Garovaglio 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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