Correlation Between Harmony Gold and Grupo Supervielle
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Grupo Supervielle 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 Grupo Supervielle 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 Grupo Supervielle SA, you can compare the effects of market volatilities on Harmony Gold and Grupo Supervielle 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 Grupo Supervielle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Grupo Supervielle.
Diversification Opportunities for Harmony Gold and Grupo Supervielle
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Harmony and Grupo is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Grupo Supervielle SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Supervielle 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 Grupo Supervielle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Supervielle has no effect on the direction of Harmony Gold i.e., Harmony Gold and Grupo Supervielle go up and down completely randomly.
Pair Corralation between Harmony Gold and Grupo Supervielle
Assuming the 90 days trading horizon Harmony Gold is expected to generate 2.25 times less return on investment than Grupo Supervielle. But when comparing it to its historical volatility, Harmony Gold Mining is 1.07 times less risky than Grupo Supervielle. It trades about 0.07 of its potential returns per unit of risk. Grupo Supervielle SA is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 112,925 in Grupo Supervielle SA on October 27, 2024 and sell it today you would earn a total of 281,575 from holding Grupo Supervielle SA or generate 249.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Harmony Gold Mining vs. Grupo Supervielle SA
Performance |
| Timeline |
| Harmony Gold Mining |
| Grupo Supervielle |
Harmony Gold and Grupo Supervielle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Grupo Supervielle
The main advantage of trading using opposite Harmony Gold and Grupo Supervielle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Grupo Supervielle 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 Grupo Supervielle will offset losses from the drop in Grupo Supervielle's long position.| Harmony Gold vs. Agrometal SAI | Harmony Gold vs. Compania de Transporte | Harmony Gold vs. Transportadora de Gas |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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