Correlation Between Harmony Gold and Intel Corp
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Intel Corp 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 Intel Corp 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 Intel Corp CEDEAR, you can compare the effects of market volatilities on Harmony Gold and Intel Corp 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 Intel Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Intel Corp.
Diversification Opportunities for Harmony Gold and Intel Corp
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Harmony and Intel is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Intel Corp CEDEAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel Corp CEDEAR 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 Intel Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel Corp CEDEAR has no effect on the direction of Harmony Gold i.e., Harmony Gold and Intel Corp go up and down completely randomly.
Pair Corralation between Harmony Gold and Intel Corp
Assuming the 90 days trading horizon Harmony Gold Mining is expected to generate 0.78 times more return on investment than Intel Corp. However, Harmony Gold Mining is 1.28 times less risky than Intel Corp. It trades about 0.55 of its potential returns per unit of risk. Intel Corp CEDEAR is currently generating about 0.22 per unit of risk. 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 | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. Intel Corp CEDEAR
Performance |
| Timeline |
| Harmony Gold Mining |
| Intel Corp CEDEAR |
Harmony Gold and Intel Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Intel Corp
The main advantage of trading using opposite Harmony Gold and Intel Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Intel Corp 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 Intel Corp will offset losses from the drop in Intel Corp'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 |
| Intel Corp vs. Transportadora de Gas | Intel Corp vs. Harmony Gold Mining | Intel Corp vs. Compania de Transporte |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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