Correlation Between Harmony Gold and Saia
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Saia 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 Saia 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 Saia Inc, you can compare the effects of market volatilities on Harmony Gold and Saia 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 Saia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Saia.
Diversification Opportunities for Harmony Gold and Saia
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Harmony and Saia is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Saia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saia Inc 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 Saia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saia Inc has no effect on the direction of Harmony Gold i.e., Harmony Gold and Saia go up and down completely randomly.
Pair Corralation between Harmony Gold and Saia
Considering the 90-day investment horizon Harmony Gold Mining is expected to generate 1.08 times more return on investment than Saia. However, Harmony Gold is 1.08 times more volatile than Saia Inc. It trades about 0.07 of its potential returns per unit of risk. Saia Inc is currently generating about 0.06 per unit of risk. If you would invest 584.00 in Harmony Gold Mining on September 3, 2024 and sell it today you would earn a total of 308.00 from holding Harmony Gold Mining or generate 52.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. Saia Inc
Performance |
| Timeline |
| Harmony Gold Mining |
| Saia Inc |
Harmony Gold and Saia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Saia
The main advantage of trading using opposite Harmony Gold and Saia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Saia 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 Saia will offset losses from the drop in Saia'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 |
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
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |