Correlation Between Vishay Intertechnology and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both Vishay Intertechnology 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 Vishay Intertechnology and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vishay Intertechnology and Harmony Gold Mining, you can compare the effects of market volatilities on Vishay Intertechnology 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 Vishay Intertechnology with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vishay Intertechnology and Harmony Gold.
Diversification Opportunities for Vishay Intertechnology and Harmony Gold
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Vishay and Harmony is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Vishay Intertechnology 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 Vishay Intertechnology 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 Vishay Intertechnology 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 Vishay Intertechnology i.e., Vishay Intertechnology and Harmony Gold go up and down completely randomly.
Pair Corralation between Vishay Intertechnology and Harmony Gold
Assuming the 90 days trading horizon Vishay Intertechnology is expected to generate 1.13 times more return on investment than Harmony Gold. However, Vishay Intertechnology is 1.13 times more volatile than Harmony Gold Mining. It trades about 0.16 of its potential returns per unit of risk. Harmony Gold Mining is currently generating about -0.21 per unit of risk. If you would invest 1,618 in Vishay Intertechnology on August 31, 2024 and sell it today you would earn a total of 205.00 from holding Vishay Intertechnology or generate 12.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vishay Intertechnology vs. Harmony Gold Mining
Performance |
| Timeline |
| Vishay Intertechnology |
| Harmony Gold Mining |
Vishay Intertechnology and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vishay Intertechnology and Harmony Gold
The main advantage of trading using opposite Vishay Intertechnology and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vishay Intertechnology 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.| Vishay Intertechnology vs. Apple Inc | Vishay Intertechnology vs. Apple Inc | Vishay Intertechnology vs. Apple Inc | Vishay Intertechnology vs. Apple Inc |
| Harmony Gold vs. ZIJIN MINH UNSPADR20 | Harmony Gold vs. Superior Plus Corp | Harmony Gold vs. NMI Holdings | Harmony Gold vs. Origin Agritech |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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