Correlation Between Molinos Juan and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both Molinos Juan 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 Molinos Juan and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Molinos Juan Semino and Harmony Gold Mining, you can compare the effects of market volatilities on Molinos Juan 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 Molinos Juan with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molinos Juan and Harmony Gold.
Diversification Opportunities for Molinos Juan and Harmony Gold
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Molinos and Harmony is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Molinos Juan Semino 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 Molinos Juan 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 Molinos Juan Semino 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 Molinos Juan i.e., Molinos Juan and Harmony Gold go up and down completely randomly.
Pair Corralation between Molinos Juan and Harmony Gold
Assuming the 90 days trading horizon Molinos Juan Semino is expected to generate 0.83 times more return on investment than Harmony Gold. However, Molinos Juan Semino is 1.2 times less risky than Harmony Gold. It trades about 0.12 of its potential returns per unit of risk. Harmony Gold Mining is currently generating about -0.07 per unit of risk. If you would invest 12,900 in Molinos Juan Semino on September 2, 2024 and sell it today you would earn a total of 2,850 from holding Molinos Juan Semino or generate 22.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Molinos Juan Semino vs. Harmony Gold Mining
Performance |
| Timeline |
| Molinos Juan Semino |
| Harmony Gold Mining |
Molinos Juan and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molinos Juan and Harmony Gold
The main advantage of trading using opposite Molinos Juan and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molinos Juan 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.| Molinos Juan vs. Harmony Gold Mining | Molinos Juan vs. Agrometal SAI | Molinos Juan vs. Transportadora de Gas | Molinos Juan vs. Compania de Transporte |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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