Correlation Between PICKN PAY and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both PICKN PAY 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 PICKN PAY and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PICKN PAY STORES and Harmony Gold Mining, you can compare the effects of market volatilities on PICKN PAY 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 PICKN PAY with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of PICKN PAY and Harmony Gold.
Diversification Opportunities for PICKN PAY and Harmony Gold
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between PICKN and Harmony is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding PICKN PAY STORES 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 PICKN PAY 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 PICKN PAY STORES 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 PICKN PAY i.e., PICKN PAY and Harmony Gold go up and down completely randomly.
Pair Corralation between PICKN PAY and Harmony Gold
Assuming the 90 days trading horizon PICKN PAY STORES is expected to generate 1.01 times more return on investment than Harmony Gold. However, PICKN PAY is 1.01 times more volatile than Harmony Gold Mining. It trades about 0.09 of its potential returns per unit of risk. Harmony Gold Mining is currently generating about 0.07 per unit of risk. If you would invest 91.00 in PICKN PAY STORES on September 1, 2024 and sell it today you would earn a total of 61.00 from holding PICKN PAY STORES or generate 67.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PICKN PAY STORES vs. Harmony Gold Mining
Performance |
| Timeline |
| PICKN PAY STORES |
| Harmony Gold Mining |
PICKN PAY and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PICKN PAY and Harmony Gold
The main advantage of trading using opposite PICKN PAY and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PICKN PAY 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.| PICKN PAY vs. AOYAMA TRADING | PICKN PAY vs. ON SEMICONDUCTOR | PICKN PAY vs. Taiwan Semiconductor Manufacturing | PICKN PAY vs. BE Semiconductor Industries |
| Harmony Gold vs. ZIJIN MINH UNSPADR20 | Harmony Gold vs. Superior Plus Corp | Harmony Gold vs. NMI Holdings | 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |