Correlation Between Harmony Gold and Diguang Intl
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Diguang Intl 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 Diguang Intl 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 Diguang Intl Dev, you can compare the effects of market volatilities on Harmony Gold and Diguang Intl 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 Diguang Intl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Diguang Intl.
Diversification Opportunities for Harmony Gold and Diguang Intl
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Harmony and Diguang is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Diguang Intl Dev in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Diguang Intl Dev 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 Diguang Intl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Diguang Intl Dev has no effect on the direction of Harmony Gold i.e., Harmony Gold and Diguang Intl go up and down completely randomly.
Pair Corralation between Harmony Gold and Diguang Intl
Considering the 90-day investment horizon Harmony Gold Mining is expected to generate 0.19 times more return on investment than Diguang Intl. However, Harmony Gold Mining is 5.24 times less risky than Diguang Intl. It trades about -0.17 of its potential returns per unit of risk. Diguang Intl Dev is currently generating about -0.21 per unit of risk. If you would invest 1,055 in Harmony Gold Mining on September 4, 2024 and sell it today you would lose (137.00) from holding Harmony Gold Mining or give up 12.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Harmony Gold Mining vs. Diguang Intl Dev
Performance |
| Timeline |
| Harmony Gold Mining |
| Diguang Intl Dev |
Harmony Gold and Diguang Intl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Diguang Intl
The main advantage of trading using opposite Harmony Gold and Diguang Intl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Diguang Intl 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 Diguang Intl will offset losses from the drop in Diguang Intl'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 |
| Diguang Intl vs. Griffon | Diguang Intl vs. Jeld Wen Holding | Diguang Intl vs. Canlan Ice Sports | Diguang Intl vs. Harmony Gold Mining |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |