Correlation Between Harmony Gold and Grupo Aeroportuario
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Grupo Aeroportuario 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 Aeroportuario 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 Aeroportuario del, you can compare the effects of market volatilities on Harmony Gold and Grupo Aeroportuario 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 Aeroportuario. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Grupo Aeroportuario.
Diversification Opportunities for Harmony Gold and Grupo Aeroportuario
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Harmony and Grupo is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Grupo Aeroportuario del in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Aeroportuario del 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 Aeroportuario. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Aeroportuario del has no effect on the direction of Harmony Gold i.e., Harmony Gold and Grupo Aeroportuario go up and down completely randomly.
Pair Corralation between Harmony Gold and Grupo Aeroportuario
Considering the 90-day investment horizon Harmony Gold Mining is expected to generate 2.2 times more return on investment than Grupo Aeroportuario. However, Harmony Gold is 2.2 times more volatile than Grupo Aeroportuario del. It trades about 0.02 of its potential returns per unit of risk. Grupo Aeroportuario del is currently generating about -0.1 per unit of risk. If you would invest 889.00 in Harmony Gold Mining on September 3, 2024 and sell it today you would earn a total of 3.00 from holding Harmony Gold Mining or generate 0.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. Grupo Aeroportuario del
Performance |
| Timeline |
| Harmony Gold Mining |
| Grupo Aeroportuario del |
Harmony Gold and Grupo Aeroportuario Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Grupo Aeroportuario
The main advantage of trading using opposite Harmony Gold and Grupo Aeroportuario positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Grupo Aeroportuario 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 Aeroportuario will offset losses from the drop in Grupo Aeroportuario's long position.| Harmony Gold vs. AngloGold Ashanti plc | Harmony Gold vs. Eldorado Gold Corp | Harmony Gold vs. Kinross Gold | Harmony Gold vs. Pan American Silver |
| Grupo Aeroportuario vs. Grupo Aeroportuario del | Grupo Aeroportuario vs. Corporacion America Airports | Grupo Aeroportuario vs. AerSale Corp | Grupo Aeroportuario vs. Flughafen Zrich AG |
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.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |