Correlation Between Jacquet Metal and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Harmony Gold 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 Jacquet Metal and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jacquet Metal Service and Harmony Gold Mining, you can compare the effects of market volatilities on Jacquet Metal and Harmony Gold 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 Jacquet Metal with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Harmony Gold.
Diversification Opportunities for Jacquet Metal and Harmony Gold
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jacquet and Harmony is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Harmony Gold Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harmony Gold Mining and Jacquet Metal 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 Jacquet Metal Service are associated (or correlated) with Harmony Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harmony Gold Mining has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Harmony Gold go up and down completely randomly.
Pair Corralation between Jacquet Metal and Harmony Gold
Assuming the 90 days horizon Jacquet Metal is expected to generate 122.19 times less return on investment than Harmony Gold. But when comparing it to its historical volatility, Jacquet Metal Service is 1.98 times less risky than Harmony Gold. It trades about 0.0 of its potential returns per unit of risk. Harmony Gold Mining is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 353.00 in Harmony Gold Mining on August 28, 2024 and sell it today you would earn a total of 577.00 from holding Harmony Gold Mining or generate 163.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Jacquet Metal Service vs. Harmony Gold Mining
Performance |
| Timeline |
| Jacquet Metal Service |
| Harmony Gold Mining |
Jacquet Metal and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Harmony Gold
The main advantage of trading using opposite Jacquet Metal and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Harmony Gold 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 Harmony Gold will offset losses from the drop in Harmony Gold's long position.| Jacquet Metal vs. Marie Brizard Wine | Jacquet Metal vs. Treasury Wine Estates | Jacquet Metal vs. GEELY AUTOMOBILE | Jacquet Metal vs. Gol Intelligent Airlines |
| Harmony Gold vs. Franco Nevada | Harmony Gold vs. Agnico Eagle Mines | Harmony Gold vs. Superior Plus Corp | Harmony Gold vs. NMI Holdings |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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