Correlation Between AcuityAds Holdings and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both AcuityAds Holdings 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 AcuityAds Holdings and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AcuityAds Holdings and Harmony Gold Mining, you can compare the effects of market volatilities on AcuityAds Holdings 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 AcuityAds Holdings with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of AcuityAds Holdings and Harmony Gold.
Diversification Opportunities for AcuityAds Holdings and Harmony Gold
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AcuityAds and Harmony is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding AcuityAds Holdings 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 AcuityAds Holdings 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 AcuityAds Holdings 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 AcuityAds Holdings i.e., AcuityAds Holdings and Harmony Gold go up and down completely randomly.
Pair Corralation between AcuityAds Holdings and Harmony Gold
If you would invest 178.00 in AcuityAds Holdings on September 3, 2024 and sell it today you would earn a total of 0.00 from holding AcuityAds Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 1.61% |
| Values | Daily Returns |
AcuityAds Holdings vs. Harmony Gold Mining
Performance |
| Timeline |
| AcuityAds Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Harmony Gold Mining |
AcuityAds Holdings and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AcuityAds Holdings and Harmony Gold
The main advantage of trading using opposite AcuityAds Holdings and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AcuityAds Holdings 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.| AcuityAds Holdings vs. Siriuspoint | AcuityAds Holdings vs. Sun Life Financial | AcuityAds Holdings vs. NI Holdings | AcuityAds Holdings vs. MGIC Investment Corp |
| Harmony Gold vs. Harmony Gold Mining | Harmony Gold vs. SPACE | Harmony Gold vs. T Rowe Price | Harmony Gold 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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