Correlation Between Harmony Gold and Pharmacia Corp
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Pharmacia Corp 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 Pharmacia Corp 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 Pharmacia Corp, you can compare the effects of market volatilities on Harmony Gold and Pharmacia Corp 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 Pharmacia Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Pharmacia Corp.
Diversification Opportunities for Harmony Gold and Pharmacia Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Harmony and Pharmacia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Pharmacia Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pharmacia Corp 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 Pharmacia Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pharmacia Corp has no effect on the direction of Harmony Gold i.e., Harmony Gold and Pharmacia Corp go up and down completely randomly.
Pair Corralation between Harmony Gold and Pharmacia Corp
If you would invest 936.00 in Harmony Gold Mining on September 12, 2024 and sell it today you would lose (7.00) from holding Harmony Gold Mining or give up 0.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. Pharmacia Corp
Performance |
| Timeline |
| Harmony Gold Mining |
| Pharmacia Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Harmony Gold and Pharmacia Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Pharmacia Corp
The main advantage of trading using opposite Harmony Gold and Pharmacia Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Pharmacia Corp 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 Pharmacia Corp will offset losses from the drop in Pharmacia Corp'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 |
| Pharmacia Corp vs. Western Acquisition Ventures | Pharmacia Corp vs. Playtika Holding Corp | Pharmacia Corp vs. Boyd Gaming | Pharmacia Corp vs. Sabre Corpo |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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