Correlation Between Solaris Energy and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both Solaris Energy 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 Solaris Energy and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Solaris Energy Infrastructure, and Harmony Gold Mining, you can compare the effects of market volatilities on Solaris Energy 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 Solaris Energy with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solaris Energy and Harmony Gold.
Diversification Opportunities for Solaris Energy and Harmony Gold
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Solaris and Harmony is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Solaris Energy Infrastructure, 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 Solaris Energy 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 Solaris Energy Infrastructure, 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 Solaris Energy i.e., Solaris Energy and Harmony Gold go up and down completely randomly.
Pair Corralation between Solaris Energy and Harmony Gold
Considering the 90-day investment horizon Solaris Energy is expected to generate 36.7 times less return on investment than Harmony Gold. In addition to that, Solaris Energy is 2.52 times more volatile than Harmony Gold Mining. It trades about 0.0 of its total potential returns per unit of risk. Harmony Gold Mining is currently generating about 0.22 per unit of volatility. If you would invest 827.00 in Harmony Gold Mining on November 3, 2024 and sell it today you would earn a total of 122.00 from holding Harmony Gold Mining or generate 14.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Solaris Energy Infrastructure, vs. Harmony Gold Mining
Performance |
| Timeline |
| Solaris Energy Infra |
| Harmony Gold Mining |
Solaris Energy and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solaris Energy and Harmony Gold
The main advantage of trading using opposite Solaris Energy and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solaris Energy 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.| Solaris Energy vs. Small Cap Premium | Solaris Energy vs. Paranovus Entertainment Technology | Solaris Energy vs. Sphere Entertainment Co | Solaris Energy vs. Inflection Point Acquisition |
| Harmony Gold vs. Bridgford Foods | Harmony Gold vs. Wabash National | Harmony Gold vs. Brunswick | Harmony Gold vs. Modine Manufacturing |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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