Correlation Between FIRST SHIP and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both FIRST SHIP 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 FIRST SHIP and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FIRST SHIP LEASE and Harmony Gold Mining, you can compare the effects of market volatilities on FIRST SHIP 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 FIRST SHIP with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIRST SHIP and Harmony Gold.
Diversification Opportunities for FIRST SHIP and Harmony Gold
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FIRST and Harmony is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding FIRST SHIP LEASE 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 FIRST SHIP 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 FIRST SHIP LEASE 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 FIRST SHIP i.e., FIRST SHIP and Harmony Gold go up and down completely randomly.
Pair Corralation between FIRST SHIP and Harmony Gold
Assuming the 90 days horizon FIRST SHIP LEASE is expected to under-perform the Harmony Gold. But the stock apears to be less risky and, when comparing its historical volatility, FIRST SHIP LEASE is 1.81 times less risky than Harmony Gold. The stock trades about -0.39 of its potential returns per unit of risk. The Harmony Gold Mining is currently generating about 0.48 of returns per unit of risk over similar time horizon. If you would invest 780.00 in Harmony Gold Mining on October 30, 2024 and sell it today you would earn a total of 210.00 from holding Harmony Gold Mining or generate 26.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIRST SHIP LEASE vs. Harmony Gold Mining
Performance |
| Timeline |
| FIRST SHIP LEASE |
| Harmony Gold Mining |
FIRST SHIP and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIRST SHIP and Harmony Gold
The main advantage of trading using opposite FIRST SHIP and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIRST SHIP 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.| FIRST SHIP vs. Liberty Broadband | FIRST SHIP vs. Addtech AB | FIRST SHIP vs. NAGOYA RAILROAD | FIRST SHIP vs. Amkor Technology |
| Harmony Gold vs. ZIJIN MINH UNSPADR20 | Harmony Gold vs. Newmont | Harmony Gold vs. Superior Plus Corp | Harmony Gold vs. Origin Agritech |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |