Correlation Between Harmony Gold and GungHo Online
Can any of the company-specific risk be diversified away by investing in both Harmony Gold and GungHo Online 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 GungHo Online 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 GungHo Online Entertainment, you can compare the effects of market volatilities on Harmony Gold and GungHo Online 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 GungHo Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and GungHo Online.
Diversification Opportunities for Harmony Gold and GungHo Online
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Harmony and GungHo is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and GungHo Online Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GungHo Online Entert 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 GungHo Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GungHo Online Entert has no effect on the direction of Harmony Gold i.e., Harmony Gold and GungHo Online go up and down completely randomly.
Pair Corralation between Harmony Gold and GungHo Online
Assuming the 90 days horizon Harmony Gold Mining is expected to under-perform the GungHo Online. In addition to that, Harmony Gold is 1.41 times more volatile than GungHo Online Entertainment. It trades about -0.07 of its total potential returns per unit of risk. GungHo Online Entertainment is currently generating about 0.03 per unit of volatility. If you would invest 1,910 in GungHo Online Entertainment on September 26, 2024 and sell it today you would earn a total of 40.00 from holding GungHo Online Entertainment or generate 2.09% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Harmony Gold Mining vs. GungHo Online Entertainment
Performance |
Timeline |
Harmony Gold Mining |
GungHo Online Entert |
Harmony Gold and GungHo Online Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Harmony Gold and GungHo Online
The main advantage of trading using opposite Harmony Gold and GungHo Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, GungHo Online 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 GungHo Online will offset losses from the drop in GungHo Online's long position.Harmony Gold vs. PLAYSTUDIOS A DL 0001 | Harmony Gold vs. Pebblebrook Hotel Trust | Harmony Gold vs. GigaMedia | Harmony Gold vs. LG Display Co |
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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 Directory module to find actively traded commodities issued by global exchanges.
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