Correlation Between Harmony Gold and Orla Mining
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Orla Mining 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 Orla Mining 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 Orla Mining, you can compare the effects of market volatilities on Harmony Gold and Orla Mining 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 Orla Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Orla Mining.
Diversification Opportunities for Harmony Gold and Orla Mining
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Harmony and Orla is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Orla Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orla Mining 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 Orla Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orla Mining has no effect on the direction of Harmony Gold i.e., Harmony Gold and Orla Mining go up and down completely randomly.
Pair Corralation between Harmony Gold and Orla Mining
Considering the 90-day investment horizon Harmony Gold is expected to generate 2.38 times less return on investment than Orla Mining. In addition to that, Harmony Gold is 1.26 times more volatile than Orla Mining. It trades about 0.02 of its total potential returns per unit of risk. Orla Mining is currently generating about 0.05 per unit of volatility. If you would invest 408.00 in Orla Mining on August 30, 2024 and sell it today you would earn a total of 58.00 from holding Orla Mining or generate 14.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. Orla Mining
Performance |
| Timeline |
| Harmony Gold Mining |
| Orla Mining |
Harmony Gold and Orla Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Orla Mining
The main advantage of trading using opposite Harmony Gold and Orla Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Orla Mining 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 Orla Mining will offset losses from the drop in Orla Mining'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 |
| Orla Mining vs. K92 Mining | Orla Mining vs. Equinox Gold Corp | Orla Mining vs. Contango ORE | Orla Mining vs. Sandstorm Gold Ltd |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |