Correlation Between Harmony Gold and Amer Sports,

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

Diversification Opportunities for Harmony Gold and Amer Sports,

-0.78

Correlation Coefficient

Harmony Gold  Amer Sports,

Pay attention - limited upside

The 3 months correlation between Harmony and Amer is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Amer Sports, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amer Sports, 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 Amer Sports,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amer Sports, has no effect on the direction of Harmony Gold i.e., Harmony Gold and Amer Sports, go up and down completely randomly.

Pair Corralation between Harmony Gold and Amer Sports,

Considering the 90-day investment horizon Harmony Gold Mining is expected to generate 1.11 times more return on investment than Amer Sports,. However, Harmony Gold is 1.11 times more volatile than Amer Sports,. It trades about 0.39 of its potential returns per unit of risk. Amer Sports, is currently generating about 0.12 per unit of risk. If you would invest  837.00  in Harmony Gold Mining on October 22, 2024 and sell it today you would earn a total of  140.00  from holding Harmony Gold Mining or generate 16.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Harmony Gold Mining  vs.  Amer Sports,

Harmony Gold Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Harmony Gold Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's primary indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Amer Sports,

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Amer Sports, are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Amer Sports, unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Harmony Gold and Amer Sports,

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

The idea behind Harmony Gold Mining and Amer Sports, 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.