Correlation Between RadNet and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both RadNet 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 RadNet and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RadNet Inc and Harmony Gold Mining, you can compare the effects of market volatilities on RadNet 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 RadNet with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of RadNet and Harmony Gold.
Diversification Opportunities for RadNet and Harmony Gold
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between RadNet and Harmony is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding RadNet Inc 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 RadNet 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 RadNet Inc 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 RadNet i.e., RadNet and Harmony Gold go up and down completely randomly.
Pair Corralation between RadNet and Harmony Gold
Given the investment horizon of 90 days RadNet Inc is expected to generate 0.94 times more return on investment than Harmony Gold. However, RadNet Inc is 1.06 times less risky than Harmony Gold. It trades about 0.23 of its potential returns per unit of risk. Harmony Gold Mining is currently generating about -0.22 per unit of risk. If you would invest 6,799 in RadNet Inc on September 4, 2024 and sell it today you would earn a total of 1,486 from holding RadNet Inc or generate 21.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
RadNet Inc vs. Harmony Gold Mining
Performance |
| Timeline |
| RadNet Inc |
| Harmony Gold Mining |
RadNet and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RadNet and Harmony Gold
The main advantage of trading using opposite RadNet and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RadNet 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.| RadNet vs. Sotera Health Co | RadNet vs. Neogen | RadNet vs. Myriad Genetics | RadNet vs. bioAffinity Technologies Warrant |
| Harmony Gold vs. Where Food Comes | Harmony Gold vs. ServiceNow | Harmony Gold vs. Hasbro Inc | Harmony Gold vs. Playtika Holding Corp |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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