Correlation Between Harmony Gold and JBG SMITH
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and JBG SMITH 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 JBG SMITH 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 JBG SMITH Properties, you can compare the effects of market volatilities on Harmony Gold and JBG SMITH 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 JBG SMITH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and JBG SMITH.
Diversification Opportunities for Harmony Gold and JBG SMITH
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Harmony and JBG is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and JBG SMITH Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JBG SMITH Properties 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 JBG SMITH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JBG SMITH Properties has no effect on the direction of Harmony Gold i.e., Harmony Gold and JBG SMITH go up and down completely randomly.
Pair Corralation between Harmony Gold and JBG SMITH
Considering the 90-day investment horizon Harmony Gold Mining is expected to generate 1.55 times more return on investment than JBG SMITH. However, Harmony Gold is 1.55 times more volatile than JBG SMITH Properties. It trades about 0.08 of its potential returns per unit of risk. JBG SMITH Properties is currently generating about 0.03 per unit of risk. If you would invest 433.00 in Harmony Gold Mining on November 28, 2024 and sell it today you would earn a total of 661.50 from holding Harmony Gold Mining or generate 152.77% 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. JBG SMITH Properties
Performance |
| Timeline |
| Harmony Gold Mining |
| JBG SMITH Properties |
Harmony Gold and JBG SMITH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and JBG SMITH
The main advantage of trading using opposite Harmony Gold and JBG SMITH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, JBG SMITH 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 JBG SMITH will offset losses from the drop in JBG SMITH'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 |
| JBG SMITH vs. Cousins Properties Incorporated | JBG SMITH vs. Highwoods Properties | JBG SMITH vs. Douglas Emmett | JBG SMITH vs. Equity Commonwealth |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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