Correlation Between Vior and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both Vior 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 Vior and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vior Inc and Harmony Gold Mining, you can compare the effects of market volatilities on Vior 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 Vior with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vior and Harmony Gold.
Diversification Opportunities for Vior and Harmony Gold
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vior and Harmony is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Vior Inc 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 Vior 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 Vior Inc 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 Vior i.e., Vior and Harmony Gold go up and down completely randomly.
Pair Corralation between Vior and Harmony Gold
Assuming the 90 days horizon Vior Inc is expected to under-perform the Harmony Gold. In addition to that, Vior is 2.44 times more volatile than Harmony Gold Mining. It trades about -0.06 of its total potential returns per unit of risk. Harmony Gold Mining is currently generating about 0.0 per unit of volatility. If you would invest 936.00 in Harmony Gold Mining on September 12, 2024 and sell it today you would lose (7.00) from holding Harmony Gold Mining or give up 0.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vior Inc vs. Harmony Gold Mining
Performance |
| Timeline |
| Vior Inc |
| Harmony Gold Mining |
Vior and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vior and Harmony Gold
The main advantage of trading using opposite Vior and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vior 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 Vior Inc 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. AngloGold Ashanti plc | Harmony Gold vs. Eldorado Gold Corp | Harmony Gold vs. Kinross Gold | Harmony Gold vs. Pan American Silver |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |