Correlation Between Telecom and Harmony Gold
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By analyzing existing cross correlation between Telecom Italia Capital and Harmony Gold Mining, you can compare the effects of market volatilities on Telecom 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 Telecom with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telecom and Harmony Gold.
Diversification Opportunities for Telecom and Harmony Gold
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Telecom and Harmony is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Telecom Italia Capital 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 Telecom 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 Telecom Italia Capital 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 Telecom i.e., Telecom and Harmony Gold go up and down completely randomly.
Pair Corralation between Telecom and Harmony Gold
Assuming the 90 days trading horizon Telecom Italia Capital is expected to under-perform the Harmony Gold. In addition to that, Telecom is 1.12 times more volatile than Harmony Gold Mining. It trades about -0.23 of its total potential returns per unit of risk. Harmony Gold Mining is currently generating about -0.16 per unit of volatility. If you would invest 920.00 in Harmony Gold Mining on September 24, 2024 and sell it today you would lose (83.00) from holding Harmony Gold Mining or give up 9.02% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.24% |
Values | Daily Returns |
Telecom Italia Capital vs. Harmony Gold Mining
Performance |
Timeline |
Telecom Italia Capital |
Harmony Gold Mining |
Telecom and Harmony Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Telecom and Harmony Gold
The main advantage of trading using opposite Telecom and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telecom 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.Telecom vs. Arrow Electronics | Telecom vs. Payoneer Global | Telecom vs. Summit Materials | Telecom vs. Asure Software |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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