Correlation Between Harmony Gold and Village Super
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Village Super 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 Village Super 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 Village Super Market, you can compare the effects of market volatilities on Harmony Gold and Village Super 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 Village Super. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Village Super.
Diversification Opportunities for Harmony Gold and Village Super
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Harmony and Village is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Village Super Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Village Super Market 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 Village Super. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Village Super Market has no effect on the direction of Harmony Gold i.e., Harmony Gold and Village Super go up and down completely randomly.
Pair Corralation between Harmony Gold and Village Super
Considering the 90-day investment horizon Harmony Gold Mining is expected to under-perform the Village Super. In addition to that, Harmony Gold is 1.03 times more volatile than Village Super Market. It trades about -0.18 of its total potential returns per unit of risk. Village Super Market is currently generating about 0.19 per unit of volatility. If you would invest 2,871 in Village Super Market on September 2, 2024 and sell it today you would earn a total of 366.00 from holding Village Super Market or generate 12.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmony Gold Mining vs. Village Super Market
Performance |
| Timeline |
| Harmony Gold Mining |
| Village Super Market |
Harmony Gold and Village Super Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Gold and Village Super
The main advantage of trading using opposite Harmony Gold and Village Super positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Village Super 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 Village Super will offset losses from the drop in Village Super's long position.| Harmony Gold vs. Fortitude Gold Corp | Harmony Gold vs. New Gold | Harmony Gold vs. Galiano Gold | Harmony Gold vs. GoldMining |
| Village Super vs. Ingles Markets Incorporated | Village Super vs. Natural Grocers by | Village Super vs. Grocery Outlet Holding | Village Super vs. Weis Markets |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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