Correlation Between 98138HAJ0 and Harmony Gold

Can any of the company-specific risk be diversified away by investing in both 98138HAJ0 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 98138HAJ0 and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between WDAY 38 01 APR 32 and Harmony Gold Mining, you can compare the effects of market volatilities on 98138HAJ0 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 98138HAJ0 with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of 98138HAJ0 and Harmony Gold.

Diversification Opportunities for 98138HAJ0 and Harmony Gold

0.01

Correlation Coefficient

98138HAJ0  Harmony Gold

Significant diversification

The 3 months correlation between 98138HAJ0 and Harmony is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding WDAY 38 01 APR 32 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 98138HAJ0 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 WDAY 38 01 APR 32 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 98138HAJ0 i.e., 98138HAJ0 and Harmony Gold go up and down completely randomly.

Pair Corralation between 98138HAJ0 and Harmony Gold

If you would invest  950.00  in Harmony Gold Mining on September 25, 2024 and sell it today you would earn a total of  0.00  from holding Harmony Gold Mining or generate 0.0% return on investment over 90 days.

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

WDAY 38 01 APR 32  vs.  Harmony Gold Mining

WDAY 38 01

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days WDAY 38 01 APR 32 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile 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 WDAY 38 01 APR 32 investors.

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. Despite nearly stable fundamental indicators, Harmony Gold is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with 98138HAJ0 and Harmony Gold

The main advantage of trading using opposite 98138HAJ0 and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 98138HAJ0 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.

The idea behind WDAY 38 01 APR 32 and Harmony Gold Mining 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.