Correlation Between SentinelOne and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both SentinelOne 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 SentinelOne and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Harmony Gold Mining, you can compare the effects of market volatilities on SentinelOne 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 SentinelOne with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Harmony Gold.
Diversification Opportunities for SentinelOne and Harmony Gold
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SentinelOne and Harmony is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne 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 SentinelOne 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 SentinelOne 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 SentinelOne i.e., SentinelOne and Harmony Gold go up and down completely randomly.
Pair Corralation between SentinelOne and Harmony Gold
Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.86 times less return on investment than Harmony Gold. But when comparing it to its historical volatility, SentinelOne is 1.58 times less risky than Harmony Gold. It trades about 0.06 of its potential returns per unit of risk. Harmony Gold Mining is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 202.00 in Harmony Gold Mining on August 24, 2024 and sell it today you would earn a total of 748.00 from holding Harmony Gold Mining or generate 370.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 65.52% |
| Values | Daily Returns |
SentinelOne vs. Harmony Gold Mining
Performance |
| Timeline |
| SentinelOne |
| Harmony Gold Mining |
SentinelOne and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Harmony Gold
The main advantage of trading using opposite SentinelOne and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne 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.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Harmony Gold vs. NH Foods Ltd | Harmony Gold vs. Relx PLC ADR | Harmony Gold vs. Ihuman Inc | Harmony Gold vs. Delta Air Lines |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |