Correlation Between Atmos Energy and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both Atmos Energy 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 Atmos Energy and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atmos Energy and Harmony Gold Mining, you can compare the effects of market volatilities on Atmos Energy 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 Atmos Energy with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atmos Energy and Harmony Gold.
Diversification Opportunities for Atmos Energy and Harmony Gold
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atmos and Harmony is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Atmos Energy 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 Atmos Energy 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 Atmos Energy 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 Atmos Energy i.e., Atmos Energy and Harmony Gold go up and down completely randomly.
Pair Corralation between Atmos Energy and Harmony Gold
Assuming the 90 days horizon Atmos Energy is expected to generate 0.33 times more return on investment than Harmony Gold. However, Atmos Energy is 3.07 times less risky than Harmony Gold. It trades about 0.15 of its potential returns per unit of risk. Harmony Gold Mining is currently generating about -0.05 per unit of risk. If you would invest 12,076 in Atmos Energy on September 25, 2024 and sell it today you would earn a total of 1,314 from holding Atmos Energy or generate 10.88% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Atmos Energy vs. Harmony Gold Mining
Performance |
Timeline |
Atmos Energy |
Harmony Gold Mining |
Atmos Energy and Harmony Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Atmos Energy and Harmony Gold
The main advantage of trading using opposite Atmos Energy and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atmos Energy 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.Atmos Energy vs. Apple Inc | Atmos Energy vs. Apple Inc | Atmos Energy vs. Apple Inc | Atmos Energy vs. Apple Inc |
Harmony Gold vs. ZIJIN MINH UNSPADR20 | Harmony Gold vs. Newmont | Harmony Gold vs. Barrick Gold | Harmony Gold vs. Franco Nevada |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data |