Correlation Between Harmony Gold and Embecta Corp
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Embecta Corp 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 Embecta Corp 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 Embecta Corp, you can compare the effects of market volatilities on Harmony Gold and Embecta Corp 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 Embecta Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Embecta Corp.
Diversification Opportunities for Harmony Gold and Embecta Corp
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Harmony and Embecta is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Embecta Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Embecta Corp 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 Embecta Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Embecta Corp has no effect on the direction of Harmony Gold i.e., Harmony Gold and Embecta Corp go up and down completely randomly.
Pair Corralation between Harmony Gold and Embecta Corp
Considering the 90-day investment horizon Harmony Gold Mining is expected to under-perform the Embecta Corp. But the stock apears to be less risky and, when comparing its historical volatility, Harmony Gold Mining is 2.18 times less risky than Embecta Corp. The stock trades about -0.18 of its potential returns per unit of risk. The Embecta Corp is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 1,454 in Embecta Corp on September 3, 2024 and sell it today you would earn a total of 629.00 from holding Embecta Corp or generate 43.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. Embecta Corp
Performance |
| Timeline |
| Harmony Gold Mining |
| Embecta Corp |
Harmony Gold and Embecta Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Embecta Corp
The main advantage of trading using opposite Harmony Gold and Embecta Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Embecta Corp 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 Embecta Corp will offset losses from the drop in Embecta Corp'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 |
| Embecta Corp vs. Baxter International | Embecta Corp vs. West Pharmaceutical Services | Embecta Corp vs. ResMed Inc | Embecta Corp vs. The Cooper Companies, |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |