Correlation Between Harmony Gold and Scientific Games
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Scientific Games 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 Scientific Games 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 Scientific Games, you can compare the effects of market volatilities on Harmony Gold and Scientific Games 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 Scientific Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Scientific Games.
Diversification Opportunities for Harmony Gold and Scientific Games
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Harmony and Scientific is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Scientific Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scientific Games 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 Scientific Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scientific Games has no effect on the direction of Harmony Gold i.e., Harmony Gold and Scientific Games go up and down completely randomly.
Pair Corralation between Harmony Gold and Scientific Games
Assuming the 90 days horizon Harmony Gold Mining is expected to generate 1.54 times more return on investment than Scientific Games. However, Harmony Gold is 1.54 times more volatile than Scientific Games. It trades about 0.04 of its potential returns per unit of risk. Scientific Games is currently generating about 0.0 per unit of risk. If you would invest 745.00 in Harmony Gold Mining on October 13, 2024 and sell it today you would earn a total of 85.00 from holding Harmony Gold Mining or generate 11.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Harmony Gold Mining vs. Scientific Games
Performance |
Timeline |
Harmony Gold Mining |
Scientific Games |
Harmony Gold and Scientific Games Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Harmony Gold and Scientific Games
The main advantage of trading using opposite Harmony Gold and Scientific Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Scientific Games 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 Scientific Games will offset losses from the drop in Scientific Games' long position.Harmony Gold vs. FIREWEED METALS P | Harmony Gold vs. Air Transport Services | Harmony Gold vs. Calibre Mining Corp | Harmony Gold vs. Perseus Mining Limited |
Scientific Games vs. American Public Education | Scientific Games vs. MUTUIONLINE | Scientific Games vs. Lamar Advertising | Scientific Games vs. DEVRY EDUCATION GRP |
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 CEOs Directory module to screen CEOs from public companies around the world.
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