Correlation Between Thor Explorations and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both Thor Explorations and Harmony Gold 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 Thor Explorations and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thor Explorations and Harmony Gold Mining, you can compare the effects of market volatilities on Thor Explorations and Harmony Gold 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 Thor Explorations with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thor Explorations and Harmony Gold.
Diversification Opportunities for Thor Explorations and Harmony Gold
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Thor and Harmony is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Thor Explorations and Harmony Gold Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harmony Gold Mining and Thor Explorations 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 Thor Explorations are associated (or correlated) with Harmony Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harmony Gold Mining has no effect on the direction of Thor Explorations i.e., Thor Explorations and Harmony Gold go up and down completely randomly.
Pair Corralation between Thor Explorations and Harmony Gold
Assuming the 90 days horizon Thor Explorations is expected to generate 2.36 times more return on investment than Harmony Gold. However, Thor Explorations is 2.36 times more volatile than Harmony Gold Mining. It trades about 0.05 of its potential returns per unit of risk. Harmony Gold Mining is currently generating about 0.01 per unit of risk. If you would invest 20.00 in Thor Explorations on September 12, 2024 and sell it today you would earn a total of 1.00 from holding Thor Explorations or generate 5.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 98.44% |
Values | Daily Returns |
Thor Explorations vs. Harmony Gold Mining
Performance |
Timeline |
Thor Explorations |
Harmony Gold Mining |
Thor Explorations and Harmony Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Thor Explorations and Harmony Gold
The main advantage of trading using opposite Thor Explorations and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thor Explorations position performs unexpectedly, Harmony Gold 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 Harmony Gold will offset losses from the drop in Harmony Gold's long position.Thor Explorations vs. Cabral Gold | Thor Explorations vs. Cartier Resources | Thor Explorations vs. Lion One Metals | Thor Explorations vs. Equinox Gold Corp |
Harmony Gold vs. AngloGold Ashanti plc | Harmony Gold vs. Eldorado Gold Corp | Harmony Gold vs. Kinross Gold | Harmony Gold vs. Pan American Silver |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
FinTech Suite Use AI to screen and filter profitable investment opportunities |