Correlation Between Sokoman Minerals and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both Sokoman Minerals 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 Sokoman Minerals and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sokoman Minerals Corp and Harmony Gold Mining, you can compare the effects of market volatilities on Sokoman Minerals 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 Sokoman Minerals with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sokoman Minerals and Harmony Gold.
Diversification Opportunities for Sokoman Minerals and Harmony Gold
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sokoman and Harmony is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Sokoman Minerals Corp 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 Sokoman Minerals 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 Sokoman Minerals Corp 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 Sokoman Minerals i.e., Sokoman Minerals and Harmony Gold go up and down completely randomly.
Pair Corralation between Sokoman Minerals and Harmony Gold
Assuming the 90 days horizon Sokoman Minerals Corp is expected to under-perform the Harmony Gold. In addition to that, Sokoman Minerals is 3.39 times more volatile than Harmony Gold Mining. It trades about -0.02 of its total potential returns per unit of risk. Harmony Gold Mining is currently generating about 0.07 per unit of volatility. If you would invest 922.00 in Harmony Gold Mining on September 13, 2024 and sell it today you would earn a total of 34.00 from holding Harmony Gold Mining or generate 3.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sokoman Minerals Corp vs. Harmony Gold Mining
Performance |
| Timeline |
| Sokoman Minerals Corp |
| Harmony Gold Mining |
Sokoman Minerals and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sokoman Minerals and Harmony Gold
The main advantage of trading using opposite Sokoman Minerals and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sokoman Minerals 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.| Sokoman Minerals vs. Irving Resources | Sokoman Minerals vs. Lion One Metals | Sokoman Minerals vs. Exploits Discovery Corp | Sokoman Minerals vs. Gander Gold |
| Harmony Gold vs. Fortitude Gold Corp | Harmony Gold vs. New Gold | Harmony Gold vs. Galiano Gold | Harmony Gold vs. GoldMining |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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