Correlation Between Rupert Resources and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both Rupert Resources 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 Rupert Resources and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rupert Resources and Harmony Gold Mining, you can compare the effects of market volatilities on Rupert Resources 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 Rupert Resources with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rupert Resources and Harmony Gold.
Diversification Opportunities for Rupert Resources and Harmony Gold
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rupert and Harmony is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Rupert Resources 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 Rupert Resources 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 Rupert Resources 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 Rupert Resources i.e., Rupert Resources and Harmony Gold go up and down completely randomly.
Pair Corralation between Rupert Resources and Harmony Gold
Assuming the 90 days horizon Rupert Resources is expected to under-perform the Harmony Gold. But the otc stock apears to be less risky and, when comparing its historical volatility, Rupert Resources is 1.56 times less risky than Harmony Gold. The otc stock trades about -0.02 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 912.00 in Harmony Gold Mining on September 3, 2024 and sell it today you would earn a total of 7.00 from holding Harmony Gold Mining or generate 0.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rupert Resources vs. Harmony Gold Mining
Performance |
| Timeline |
| Rupert Resources |
| Harmony Gold Mining |
Rupert Resources and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rupert Resources and Harmony Gold
The main advantage of trading using opposite Rupert Resources and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rupert Resources 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.| Rupert Resources vs. Harmony Gold Mining | Rupert Resources vs. SPACE | Rupert Resources vs. T Rowe Price | Rupert Resources vs. Ampleforth |
| Harmony Gold vs. AngloGold Ashanti plc | Harmony Gold vs. Eldorado Gold Corp | Harmony Gold vs. Kinross Gold | Harmony Gold vs. Pan American Silver |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |