Correlation Between Harmony Gold and Aurelius Minerals
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Aurelius Minerals 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 Aurelius Minerals 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 Aurelius Minerals, you can compare the effects of market volatilities on Harmony Gold and Aurelius Minerals 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 Aurelius Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Aurelius Minerals.
Diversification Opportunities for Harmony Gold and Aurelius Minerals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Harmony and Aurelius is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Aurelius Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurelius Minerals 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 Aurelius Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurelius Minerals has no effect on the direction of Harmony Gold i.e., Harmony Gold and Aurelius Minerals go up and down completely randomly.
Pair Corralation between Harmony Gold and Aurelius Minerals
If you would invest 584.00 in Harmony Gold Mining on September 3, 2024 and sell it today you would earn a total of 335.00 from holding Harmony Gold Mining or generate 57.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Harmony Gold Mining vs. Aurelius Minerals
Performance |
| Timeline |
| Harmony Gold Mining |
| Aurelius Minerals |
Harmony Gold and Aurelius Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Aurelius Minerals
The main advantage of trading using opposite Harmony Gold and Aurelius Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Aurelius Minerals 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 Aurelius Minerals will offset losses from the drop in Aurelius Minerals' 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 |
| Aurelius Minerals vs. Harmony Gold Mining | Aurelius Minerals vs. SPACE | Aurelius Minerals vs. T Rowe Price | Aurelius Minerals vs. Ampleforth |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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