Correlation Between Harmony Gold and Liberty Resources
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Liberty Resources 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 Liberty Resources 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 Liberty Resources Acquisition, you can compare the effects of market volatilities on Harmony Gold and Liberty Resources 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 Liberty Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Liberty Resources.
Diversification Opportunities for Harmony Gold and Liberty Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Harmony and Liberty is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Liberty Resources Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liberty Resources 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 Liberty Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liberty Resources has no effect on the direction of Harmony Gold i.e., Harmony Gold and Liberty Resources go up and down completely randomly.
Pair Corralation between Harmony Gold and Liberty Resources
If you would invest 1,052 in Harmony Gold Mining on November 28, 2024 and sell it today you would earn a total of 36.00 from holding Harmony Gold Mining or generate 3.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. Liberty Resources Acquisition
Performance |
| Timeline |
| Harmony Gold Mining |
| Liberty Resources |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Harmony Gold and Liberty Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Liberty Resources
The main advantage of trading using opposite Harmony Gold and Liberty Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Liberty Resources 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 Liberty Resources will offset losses from the drop in Liberty Resources' 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 |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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