Correlation Between Harmony Gold and TRAINLINE PLC
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and TRAINLINE PLC 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 Harmony Gold and TRAINLINE PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harmony Gold Mining and TRAINLINE PLC LS, you can compare the effects of market volatilities on Harmony Gold and TRAINLINE PLC 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 Harmony Gold with a short position of TRAINLINE PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and TRAINLINE PLC.
Diversification Opportunities for Harmony Gold and TRAINLINE PLC
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Harmony and TRAINLINE is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and TRAINLINE PLC LS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRAINLINE PLC LS and Harmony Gold 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 Harmony Gold Mining are associated (or correlated) with TRAINLINE PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRAINLINE PLC LS has no effect on the direction of Harmony Gold i.e., Harmony Gold and TRAINLINE PLC go up and down completely randomly.
Pair Corralation between Harmony Gold and TRAINLINE PLC
Assuming the 90 days horizon Harmony Gold Mining is expected to generate 1.26 times more return on investment than TRAINLINE PLC. However, Harmony Gold is 1.26 times more volatile than TRAINLINE PLC LS. It trades about 0.06 of its potential returns per unit of risk. TRAINLINE PLC LS is currently generating about 0.04 per unit of risk. If you would invest 367.00 in Harmony Gold Mining on October 4, 2024 and sell it today you would earn a total of 413.00 from holding Harmony Gold Mining or generate 112.53% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Harmony Gold Mining vs. TRAINLINE PLC LS
Performance |
Timeline |
Harmony Gold Mining |
TRAINLINE PLC LS |
Harmony Gold and TRAINLINE PLC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Harmony Gold and TRAINLINE PLC
The main advantage of trading using opposite Harmony Gold and TRAINLINE PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, TRAINLINE PLC 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 TRAINLINE PLC will offset losses from the drop in TRAINLINE PLC's long position.Harmony Gold vs. Newmont | Harmony Gold vs. SIVERS SEMICONDUCTORS AB | Harmony Gold vs. Talanx AG | Harmony Gold vs. Norsk Hydro ASA |
TRAINLINE PLC vs. TRAVEL LEISURE DL 01 | TRAINLINE PLC vs. MakeMyTrip Limited | TRAINLINE PLC vs. NMI Holdings | TRAINLINE PLC vs. SIVERS SEMICONDUCTORS AB |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Equity Valuation Check real value of public entities based on technical and fundamental data |