Correlation Between BCECN and Harmony Gold
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By analyzing existing cross correlation between BCECN 215 15 FEB 32 and Harmony Gold Mining, you can compare the effects of market volatilities on BCECN 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 BCECN with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of BCECN and Harmony Gold.
Diversification Opportunities for BCECN and Harmony Gold
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BCECN and Harmony is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding BCECN 215 15 FEB 32 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 BCECN 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 BCECN 215 15 FEB 32 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 BCECN i.e., BCECN and Harmony Gold go up and down completely randomly.
Pair Corralation between BCECN and Harmony Gold
Assuming the 90 days trading horizon BCECN 215 15 FEB 32 is expected to generate 0.13 times more return on investment than Harmony Gold. However, BCECN 215 15 FEB 32 is 7.63 times less risky than Harmony Gold. It trades about -0.05 of its potential returns per unit of risk. Harmony Gold Mining is currently generating about -0.01 per unit of risk. If you would invest 8,331 in BCECN 215 15 FEB 32 on November 3, 2024 and sell it today you would lose (188.00) from holding BCECN 215 15 FEB 32 or give up 2.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 91.8% |
| Values | Daily Returns |
BCECN 215 15 FEB 32 vs. Harmony Gold Mining
Performance |
| Timeline |
| BCECN 215 15 |
| Harmony Gold Mining |
BCECN and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BCECN and Harmony Gold
The main advantage of trading using opposite BCECN and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BCECN 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.The idea behind BCECN 215 15 FEB 32 and Harmony Gold Mining pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Harmony Gold vs. Fernhill Beverage | Harmony Gold vs. Bridgford Foods | Harmony Gold vs. Grocery Outlet Holding | Harmony Gold vs. Romana Food Brands |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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