Correlation Between Harmony Gold and 694308KH9

Can any of the company-specific risk be diversified away by investing in both Harmony Gold and 694308KH9 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 694308KH9 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 PCG 675 15 JAN 53, you can compare the effects of market volatilities on Harmony Gold and 694308KH9 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 694308KH9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and 694308KH9.

Diversification Opportunities for Harmony Gold and 694308KH9

0.02

Correlation Coefficient

Harmony Gold  694308KH9

Significant diversification

The 3 months correlation between Harmony and 694308KH9 is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and PCG 675 15 JAN 53 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PCG 675 15 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 694308KH9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PCG 675 15 has no effect on the direction of Harmony Gold i.e., Harmony Gold and 694308KH9 go up and down completely randomly.

Pair Corralation between Harmony Gold and 694308KH9

Assuming the 90 days horizon Harmony Gold Mining is expected to generate 3.22 times more return on investment than 694308KH9. However, Harmony Gold is 3.22 times more volatile than PCG 675 15 JAN 53. It trades about 0.19 of its potential returns per unit of risk. PCG 675 15 JAN 53 is currently generating about -0.13 per unit of risk. If you would invest  827.00  in Harmony Gold Mining on December 26, 2024 and sell it today you would earn a total of  373.00  from holding Harmony Gold Mining or generate 45.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	83.87%
Values	Daily Returns

Harmony Gold Mining  vs.  PCG 675 15 JAN 53

Harmony Gold Mining

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Harmony Gold Mining are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain fundamental indicators, Harmony Gold reported solid returns over the last few months and may actually be approaching a breakup point.

PCG 675 15

Risk-Adjusted Performance

Very Weak

Over the last 90 days PCG 675 15 JAN 53 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest sluggish performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for PCG 675 15 JAN 53 investors.

Pair Trading with Harmony Gold and 694308KH9

The main advantage of trading using opposite Harmony Gold and 694308KH9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, 694308KH9 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 694308KH9 will offset losses from the drop in 694308KH9's long position.

The idea behind Harmony Gold Mining and PCG 675 15 JAN 53 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.

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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.