Correlation Between Harmony Gold and Kodiak Sciences
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Kodiak Sciences 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 Kodiak Sciences 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 Kodiak Sciences, you can compare the effects of market volatilities on Harmony Gold and Kodiak Sciences 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 Kodiak Sciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Kodiak Sciences.
Diversification Opportunities for Harmony Gold and Kodiak Sciences
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Harmony and Kodiak is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Kodiak Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kodiak Sciences 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 Kodiak Sciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kodiak Sciences has no effect on the direction of Harmony Gold i.e., Harmony Gold and Kodiak Sciences go up and down completely randomly.
Pair Corralation between Harmony Gold and Kodiak Sciences
Considering the 90-day investment horizon Harmony Gold Mining is expected to under-perform the Kodiak Sciences. But the stock apears to be less risky and, when comparing its historical volatility, Harmony Gold Mining is 1.19 times less risky than Kodiak Sciences. The stock trades about -0.18 of its potential returns per unit of risk. The Kodiak Sciences is currently generating about 0.67 of returns per unit of risk over similar time horizon. If you would invest 390.00 in Kodiak Sciences on September 3, 2024 and sell it today you would earn a total of 277.00 from holding Kodiak Sciences or generate 71.03% 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. Kodiak Sciences
Performance |
| Timeline |
| Harmony Gold Mining |
| Kodiak Sciences |
Harmony Gold and Kodiak Sciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Kodiak Sciences
The main advantage of trading using opposite Harmony Gold and Kodiak Sciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Kodiak Sciences 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 Kodiak Sciences will offset losses from the drop in Kodiak Sciences' 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 |
| Kodiak Sciences vs. Reviva Pharmaceuticals Holdings | Kodiak Sciences vs. Eyenovia | Kodiak Sciences vs. Cognition Therapeutics | Kodiak Sciences vs. Transcode Therapeutics |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |