Correlation Between Clean Energy and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both Clean Energy 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 Clean Energy and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clean Energy Fuels and Harmony Gold Mining, you can compare the effects of market volatilities on Clean Energy 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 Clean Energy with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clean Energy and Harmony Gold.
Diversification Opportunities for Clean Energy and Harmony Gold
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Clean and Harmony is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Clean Energy Fuels 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 Clean Energy 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 Clean Energy Fuels 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 Clean Energy i.e., Clean Energy and Harmony Gold go up and down completely randomly.
Pair Corralation between Clean Energy and Harmony Gold
Assuming the 90 days horizon Clean Energy Fuels is expected to generate 1.56 times more return on investment than Harmony Gold. However, Clean Energy is 1.56 times more volatile than Harmony Gold Mining. It trades about 0.15 of its potential returns per unit of risk. Harmony Gold Mining is currently generating about -0.17 per unit of risk. If you would invest 255.00 in Clean Energy Fuels on September 1, 2024 and sell it today you would earn a total of 39.00 from holding Clean Energy Fuels or generate 15.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clean Energy Fuels vs. Harmony Gold Mining
Performance |
| Timeline |
| Clean Energy Fuels |
| Harmony Gold Mining |
Clean Energy and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clean Energy and Harmony Gold
The main advantage of trading using opposite Clean Energy and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clean Energy 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.| Clean Energy vs. Japan Medical Dynamic | Clean Energy vs. AVITA Medical | Clean Energy vs. Cardinal Health | Clean Energy vs. Diamyd Medical AB |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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