Correlation Between Harmony Gold and Radisson Mining
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Radisson 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 Radisson 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 Radisson Mining Resources, you can compare the effects of market volatilities on Harmony Gold and Radisson 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 Radisson Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Radisson Mining.
Diversification Opportunities for Harmony Gold and Radisson Mining
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Harmony and Radisson is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Radisson Mining Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Radisson Mining 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 Radisson Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Radisson Mining Resources has no effect on the direction of Harmony Gold i.e., Harmony Gold and Radisson Mining go up and down completely randomly.
Pair Corralation between Harmony Gold and Radisson Mining
Considering the 90-day investment horizon Harmony Gold Mining is expected to generate 0.68 times more return on investment than Radisson Mining. However, Harmony Gold Mining is 1.48 times less risky than Radisson Mining. It trades about -0.18 of its potential returns per unit of risk. Radisson Mining Resources is currently generating about -0.13 per unit of risk. If you would invest 1,055 in Harmony Gold Mining on September 3, 2024 and sell it today you would lose (136.00) from holding Harmony Gold Mining or give up 12.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. Radisson Mining Resources
Performance |
| Timeline |
| Harmony Gold Mining |
| Radisson Mining Resources |
Harmony Gold and Radisson Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Radisson Mining
The main advantage of trading using opposite Harmony Gold and Radisson Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Radisson 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 Radisson Mining will offset losses from the drop in Radisson 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 |
| Radisson Mining vs. Harmony Gold Mining | Radisson Mining vs. SPACE | Radisson Mining vs. T Rowe Price | Radisson Mining vs. Ampleforth |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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