Correlation Between MOLSON COORS and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both MOLSON COORS 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 MOLSON COORS and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOLSON RS BEVERAGE and Harmony Gold Mining, you can compare the effects of market volatilities on MOLSON COORS 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 MOLSON COORS with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOLSON COORS and Harmony Gold.
Diversification Opportunities for MOLSON COORS and Harmony Gold
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between MOLSON and Harmony is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding MOLSON RS BEVERAGE 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 MOLSON COORS 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 MOLSON RS BEVERAGE 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 MOLSON COORS i.e., MOLSON COORS and Harmony Gold go up and down completely randomly.
Pair Corralation between MOLSON COORS and Harmony Gold
Assuming the 90 days trading horizon MOLSON RS BEVERAGE is expected to under-perform the Harmony Gold. But the stock apears to be less risky and, when comparing its historical volatility, MOLSON RS BEVERAGE is 1.26 times less risky than Harmony Gold. The stock trades about 0.0 of its potential returns per unit of risk. The Harmony Gold Mining is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 321.00 in Harmony Gold Mining on September 4, 2024 and sell it today you would earn a total of 529.00 from holding Harmony Gold Mining or generate 164.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MOLSON RS BEVERAGE vs. Harmony Gold Mining
Performance |
| Timeline |
| MOLSON RS BEVERAGE |
| Harmony Gold Mining |
MOLSON COORS and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOLSON COORS and Harmony Gold
The main advantage of trading using opposite MOLSON COORS and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOLSON COORS 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.| MOLSON COORS vs. SPARTAN STORES | MOLSON COORS vs. Caseys General Stores | MOLSON COORS vs. KOOL2PLAY SA ZY | MOLSON COORS vs. Columbia Sportswear |
| Harmony Gold vs. ZIJIN MINH UNSPADR20 | Harmony Gold vs. Barrick Gold | 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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