Correlation Between AETNA and Harmony Gold
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By analyzing existing cross correlation between AETNA INC NEW and Harmony Gold Mining, you can compare the effects of market volatilities on AETNA 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 AETNA with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of AETNA and Harmony Gold.
Diversification Opportunities for AETNA and Harmony Gold
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AETNA and Harmony is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding AETNA INC NEW 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 AETNA 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 AETNA INC NEW 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 AETNA i.e., AETNA and Harmony Gold go up and down completely randomly.
Pair Corralation between AETNA and Harmony Gold
Assuming the 90 days trading horizon AETNA is expected to generate 82.51 times less return on investment than Harmony Gold. But when comparing it to its historical volatility, AETNA INC NEW is 24.1 times less risky than Harmony Gold. It trades about 0.03 of its potential returns per unit of risk. Harmony Gold Mining is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 641.00 in Harmony Gold Mining on August 27, 2024 and sell it today you would earn a total of 309.00 from holding Harmony Gold Mining or generate 48.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 88.83% |
| Values | Daily Returns |
AETNA INC NEW vs. Harmony Gold Mining
Performance |
| Timeline |
| AETNA INC NEW |
| Harmony Gold Mining |
AETNA and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AETNA and Harmony Gold
The main advantage of trading using opposite AETNA and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AETNA 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.| AETNA vs. Harmony Gold Mining | AETNA vs. Boston Properties | AETNA vs. Haverty Furniture Companies | AETNA vs. Hooker Furniture |
| Harmony Gold vs. Neogen | Harmony Gold vs. Merit Medical Systems | Harmony Gold vs. Omni Health | Harmony Gold vs. Hurco Companies |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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