Correlation Between Orezone Gold and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both Orezone Gold 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 Orezone Gold and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orezone Gold Corp and Harmony Gold Mining, you can compare the effects of market volatilities on Orezone Gold 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 Orezone Gold with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orezone Gold and Harmony Gold.
Diversification Opportunities for Orezone Gold and Harmony Gold
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Orezone and Harmony is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Orezone Gold Corp 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 Orezone Gold 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 Orezone Gold Corp 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 Orezone Gold i.e., Orezone Gold and Harmony Gold go up and down completely randomly.
Pair Corralation between Orezone Gold and Harmony Gold
Assuming the 90 days horizon Orezone Gold Corp is expected to under-perform the Harmony Gold. In addition to that, Orezone Gold is 1.05 times more volatile than Harmony Gold Mining. It trades about -0.05 of its total potential returns per unit of risk. Harmony Gold Mining is currently generating about -0.02 per unit of volatility. If you would invest 1,033 in Harmony Gold Mining on August 29, 2024 and sell it today you would lose (83.00) from holding Harmony Gold Mining or give up 8.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.31% |
| Values | Daily Returns |
Orezone Gold Corp vs. Harmony Gold Mining
Performance |
| Timeline |
| Orezone Gold Corp |
| Harmony Gold Mining |
Orezone Gold and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orezone Gold and Harmony Gold
The main advantage of trading using opposite Orezone Gold and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orezone Gold 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.| Orezone Gold vs. Aurion Resources | Orezone Gold vs. Minera Alamos | Orezone Gold vs. Rio2 Limited | Orezone Gold vs. Roscan Gold Corp |
| Harmony Gold vs. Vertiv Holdings Co | Harmony Gold vs. Nasdaq Inc | Harmony Gold vs. McDonalds | Harmony Gold vs. Walmart |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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