Correlation Between Harmony Gold and Sprott Physical
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Sprott Physical 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 Sprott Physical 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 Sprott Physical Gold, you can compare the effects of market volatilities on Harmony Gold and Sprott Physical 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 Sprott Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Sprott Physical.
Diversification Opportunities for Harmony Gold and Sprott Physical
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Harmony and Sprott is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Sprott Physical Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sprott Physical Gold 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 Sprott Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sprott Physical Gold has no effect on the direction of Harmony Gold i.e., Harmony Gold and Sprott Physical go up and down completely randomly.
Pair Corralation between Harmony Gold and Sprott Physical
Considering the 90-day investment horizon Harmony Gold Mining is expected to generate 2.83 times more return on investment than Sprott Physical. However, Harmony Gold is 2.83 times more volatile than Sprott Physical Gold. It trades about 0.09 of its potential returns per unit of risk. Sprott Physical Gold is currently generating about 0.07 per unit of risk. If you would invest 322.00 in Harmony Gold Mining on November 2, 2024 and sell it today you would earn a total of 810.50 from holding Harmony Gold Mining or generate 251.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. Sprott Physical Gold
Performance |
| Timeline |
| Harmony Gold Mining |
| Sprott Physical Gold |
Harmony Gold and Sprott Physical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Sprott Physical
The main advantage of trading using opposite Harmony Gold and Sprott Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Sprott Physical 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 Sprott Physical will offset losses from the drop in Sprott Physical'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 |
| Sprott Physical vs. Sprott Physical Silver | Sprott Physical vs. Sprott Physical Platinum | Sprott Physical vs. Blue Owl Capital | Sprott Physical vs. Ares Management LP |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |