Correlation Between NEXANS and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both NEXANS 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 NEXANS and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NEXANS and Harmony Gold Mining, you can compare the effects of market volatilities on NEXANS 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 NEXANS with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEXANS and Harmony Gold.
Diversification Opportunities for NEXANS and Harmony Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NEXANS and Harmony is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NEXANS 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 NEXANS 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 NEXANS 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 NEXANS i.e., NEXANS and Harmony Gold go up and down completely randomly.
Pair Corralation between NEXANS and Harmony Gold
If you would invest 0.00 in NEXANS on October 8, 2024 and sell it today you would earn a total of 0.00 from holding NEXANS or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 6.25% |
| Values | Daily Returns |
NEXANS vs. Harmony Gold Mining
Performance |
| Timeline |
| NEXANS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Harmony Gold Mining |
NEXANS and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NEXANS and Harmony Gold
The main advantage of trading using opposite NEXANS and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEXANS 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.| NEXANS vs. Costco Wholesale Corp | NEXANS vs. USU Software AG | NEXANS vs. SPARTAN STORES | NEXANS vs. JIAHUA STORES |
| Harmony Gold vs. Wheaton Precious Metals | Harmony Gold vs. Superior Plus Corp | Harmony Gold vs. NMI Holdings | Harmony Gold vs. SIVERS SEMICONDUCTORS AB |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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