Correlation Between Harmony Gold and Campbell Resources
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Campbell Resources 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 Campbell Resources 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 Campbell Resources, you can compare the effects of market volatilities on Harmony Gold and Campbell Resources 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 Campbell Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Campbell Resources.
Diversification Opportunities for Harmony Gold and Campbell Resources
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Harmony and Campbell is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Campbell Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Campbell Resources 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 Campbell Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Campbell Resources has no effect on the direction of Harmony Gold i.e., Harmony Gold and Campbell Resources go up and down completely randomly.
Pair Corralation between Harmony Gold and Campbell Resources
If you would invest (100.00) in Campbell Resources on August 30, 2024 and sell it today you would earn a total of 100.00 from holding Campbell Resources or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. Campbell Resources
Performance |
| Timeline |
| Harmony Gold Mining |
| Campbell Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Harmony Gold and Campbell Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Campbell Resources
The main advantage of trading using opposite Harmony Gold and Campbell Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Campbell Resources 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 Campbell Resources will offset losses from the drop in Campbell Resources' 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 |
| Campbell Resources vs. Maritime Resources Corp | Campbell Resources vs. Grande Portage Resources | Campbell Resources vs. Red Eagle Mining | Campbell Resources vs. Flowery Gold Mines |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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