Correlation Between Harmony Gold and Halliburton
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Halliburton 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 Halliburton 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 Halliburton Co, you can compare the effects of market volatilities on Harmony Gold and Halliburton 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 Halliburton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Halliburton.
Diversification Opportunities for Harmony Gold and Halliburton
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Harmony and Halliburton is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Halliburton Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halliburton 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 Halliburton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halliburton has no effect on the direction of Harmony Gold i.e., Harmony Gold and Halliburton go up and down completely randomly.
Pair Corralation between Harmony Gold and Halliburton
Assuming the 90 days trading horizon Harmony Gold Mining is expected to under-perform the Halliburton. In addition to that, Harmony Gold is 1.28 times more volatile than Halliburton Co. It trades about -0.23 of its total potential returns per unit of risk. Halliburton Co is currently generating about 0.11 per unit of volatility. If you would invest 1,662,500 in Halliburton Co on September 5, 2024 and sell it today you would earn a total of 97,500 from holding Halliburton Co or generate 5.86% 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. Halliburton Co
Performance |
| Timeline |
| Harmony Gold Mining |
| Halliburton |
Harmony Gold and Halliburton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Halliburton
The main advantage of trading using opposite Harmony Gold and Halliburton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Halliburton 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 Halliburton will offset losses from the drop in Halliburton's long position.| Harmony Gold vs. Longvie SA | Harmony Gold vs. United States Steel | Harmony Gold vs. Capex SA | Harmony Gold vs. Pfizer Inc |
| Halliburton vs. Camuzzi Gas Pampeana | Halliburton vs. Metrogas SA | Halliburton vs. American Express Co | Halliburton vs. QUALCOMM Incorporated |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |