Correlation Between VSee Health, and Harmony Gold

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

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

Diversification Opportunities for VSee Health, and Harmony Gold

0.07

Correlation Coefficient

VSee Health,  Harmony Gold

Significant diversification

The 3 months correlation between VSee and Harmony is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding VSee Health, 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 VSee Health, 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 VSee Health, 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 VSee Health, i.e., VSee Health, and Harmony Gold go up and down completely randomly.

Pair Corralation between VSee Health, and Harmony Gold

Given the investment horizon of 90 days VSee Health, is expected to generate 1.61 times more return on investment than Harmony Gold. However, VSee Health, is 1.61 times more volatile than Harmony Gold Mining. It trades about 0.12 of its potential returns per unit of risk. Harmony Gold Mining is currently generating about 0.02 per unit of risk. If you would invest  133.00  in VSee Health, on October 25, 2024 and sell it today you would earn a total of  17.00  from holding VSee Health, or generate 12.78% return on investment over 90 days.

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

VSee Health,  vs.  Harmony Gold Mining

VSee Health,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days VSee Health, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

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 fragile performance in the last few months, the Stock's fundamental indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with VSee Health, and Harmony Gold

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

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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.