Correlation Between KRAFT and Harmony Gold
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By analyzing existing cross correlation between KRAFT HEINZ FOODS and Harmony Gold Mining, you can compare the effects of market volatilities on KRAFT 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 KRAFT with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of KRAFT and Harmony Gold.
Diversification Opportunities for KRAFT and Harmony Gold
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between KRAFT and Harmony is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding KRAFT HEINZ FOODS 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 KRAFT 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 KRAFT HEINZ FOODS 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 KRAFT i.e., KRAFT and Harmony Gold go up and down completely randomly.
Pair Corralation between KRAFT and Harmony Gold
Assuming the 90 days trading horizon KRAFT HEINZ FOODS is expected to under-perform the Harmony Gold. But the bond apears to be less risky and, when comparing its historical volatility, KRAFT HEINZ FOODS is 16.87 times less risky than Harmony Gold. The bond trades about 0.0 of its potential returns per unit of risk. The Harmony Gold Mining is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 202.00 in Harmony Gold Mining on September 3, 2024 and sell it today you would earn a total of 748.00 from holding Harmony Gold Mining or generate 370.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 65.59% |
| Values | Daily Returns |
KRAFT HEINZ FOODS vs. Harmony Gold Mining
Performance |
| Timeline |
| KRAFT HEINZ FOODS |
| Harmony Gold Mining |
KRAFT and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KRAFT and Harmony Gold
The main advantage of trading using opposite KRAFT and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KRAFT 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.| KRAFT vs. Harmony Gold Mining | KRAFT vs. Evolution Mining | KRAFT vs. Mills Music Trust | KRAFT vs. Summa Silver Corp |
| Harmony Gold vs. Harmony Gold Mining | Harmony Gold vs. SPACE | Harmony Gold vs. T Rowe Price | Harmony Gold vs. Ampleforth |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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