Correlation Between Harmony Gold and Mountain Crest
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Mountain Crest 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 Mountain Crest 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 Mountain Crest Acquisition, you can compare the effects of market volatilities on Harmony Gold and Mountain Crest 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 Mountain Crest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Mountain Crest.
Diversification Opportunities for Harmony Gold and Mountain Crest
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Harmony and Mountain is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Mountain Crest Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mountain Crest Acqui 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 Mountain Crest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mountain Crest Acqui has no effect on the direction of Harmony Gold i.e., Harmony Gold and Mountain Crest go up and down completely randomly.
Pair Corralation between Harmony Gold and Mountain Crest
If you would invest 903.00 in Harmony Gold Mining on September 14, 2024 and sell it today you would earn a total of 11.00 from holding Harmony Gold Mining or generate 1.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. Mountain Crest Acquisition
Performance |
| Timeline |
| Harmony Gold Mining |
| Mountain Crest Acqui |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Harmony Gold and Mountain Crest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Mountain Crest
The main advantage of trading using opposite Harmony Gold and Mountain Crest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Mountain Crest 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 Mountain Crest will offset losses from the drop in Mountain Crest's long position.| Harmony Gold vs. Fortitude Gold Corp | Harmony Gold vs. New Gold | Harmony Gold vs. Galiano Gold | Harmony Gold vs. GoldMining |
| Mountain Crest vs. Griffon | Mountain Crest vs. Sandstorm Gold Ltd | Mountain Crest vs. Delek Drilling | Mountain Crest vs. Papaya Growth Opportunity |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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