Correlation Between Harmony Gold and Nok Airlines
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Nok Airlines 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 Nok Airlines 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 Nok Airlines Public, you can compare the effects of market volatilities on Harmony Gold and Nok Airlines 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 Nok Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Nok Airlines.
Diversification Opportunities for Harmony Gold and Nok Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Harmony and Nok is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Nok Airlines Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nok Airlines Public 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 Nok Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nok Airlines Public has no effect on the direction of Harmony Gold i.e., Harmony Gold and Nok Airlines go up and down completely randomly.
Pair Corralation between Harmony Gold and Nok Airlines
If you would invest 949.00 in Harmony Gold Mining on December 6, 2024 and sell it today you would earn a total of 251.00 from holding Harmony Gold Mining or generate 26.45% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Harmony Gold Mining vs. Nok Airlines Public
Performance |
Timeline |
Harmony Gold Mining |
Nok Airlines Public |
Harmony Gold and Nok Airlines Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Harmony Gold and Nok Airlines
The main advantage of trading using opposite Harmony Gold and Nok Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, Nok Airlines 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 Nok Airlines will offset losses from the drop in Nok Airlines' long position.Harmony Gold vs. PepsiCo | Harmony Gold vs. AKITA Drilling | Harmony Gold vs. Constellation Brands Class | Harmony Gold vs. Cansortium |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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