Correlation Between Harmony Gold and Grupo Televisa
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Grupo Televisa 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 Televisa 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 Televisa SAB, you can compare the effects of market volatilities on Harmony Gold and Grupo Televisa 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 Televisa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Grupo Televisa.
Diversification Opportunities for Harmony Gold and Grupo Televisa
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Harmony and Grupo is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Grupo Televisa SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Televisa SAB 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 Televisa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Televisa SAB has no effect on the direction of Harmony Gold i.e., Harmony Gold and Grupo Televisa go up and down completely randomly.
Pair Corralation between Harmony Gold and Grupo Televisa
Assuming the 90 days trading horizon Harmony Gold Mining is expected to generate 0.99 times more return on investment than Grupo Televisa. However, Harmony Gold Mining is 1.01 times less risky than Grupo Televisa. It trades about 0.05 of its potential returns per unit of risk. Grupo Televisa SAB is currently generating about 0.0 per unit of risk. If you would invest 1,197,500 in Harmony Gold Mining on November 2, 2024 and sell it today you would earn a total of 140,000 from holding Harmony Gold Mining or generate 11.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.04% |
| Values | Daily Returns |
Harmony Gold Mining vs. Grupo Televisa SAB
Performance |
| Timeline |
| Harmony Gold Mining |
| Grupo Televisa SAB |
Harmony Gold and Grupo Televisa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Grupo Televisa
The main advantage of trading using opposite Harmony Gold and Grupo Televisa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Grupo Televisa 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 Televisa will offset losses from the drop in Grupo Televisa's long position.| Harmony Gold vs. Telecom Argentina | Harmony Gold vs. Transportadora de Gas | Harmony Gold vs. Agrometal SAI |
| Grupo Televisa vs. Telecom Argentina | Grupo Televisa vs. United States Steel | Grupo Televisa vs. Transportadora de Gas | Grupo Televisa 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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