Correlation Between Renergen and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both Renergen 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 Renergen and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Renergen and Harmony Gold Mining, you can compare the effects of market volatilities on Renergen 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 Renergen with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Renergen and Harmony Gold.
Diversification Opportunities for Renergen and Harmony Gold
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Renergen and Harmony is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Renergen 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 Renergen 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 Renergen 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 Renergen i.e., Renergen and Harmony Gold go up and down completely randomly.
Pair Corralation between Renergen and Harmony Gold
Assuming the 90 days trading horizon Renergen is expected to under-perform the Harmony Gold. But the stock apears to be less risky and, when comparing its historical volatility, Renergen is 1.11 times less risky than Harmony Gold. The stock trades about -0.2 of its potential returns per unit of risk. The Harmony Gold Mining is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,679,600 in Harmony Gold Mining on September 13, 2024 and sell it today you would earn a total of 11,500 from holding Harmony Gold Mining or generate 0.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Renergen vs. Harmony Gold Mining
Performance |
| Timeline |
| Renergen |
| Harmony Gold Mining |
Renergen and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Renergen and Harmony Gold
The main advantage of trading using opposite Renergen and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Renergen 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.| Renergen vs. Standard Bank Group | Renergen vs. HomeChoice Investments | Renergen vs. Brimstone Investment | Renergen vs. Astoria Investments |
| Harmony Gold vs. Gold Fields | Harmony Gold vs. Sibanye Stillwater | Harmony Gold vs. AngloGold Ashanti | Harmony Gold vs. DRDGOLD Limited |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |