Correlation Between Global Education and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both Global Education 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 Global Education and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Education Communities and Harmony Gold Mining, you can compare the effects of market volatilities on Global Education 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 Global Education with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Education and Harmony Gold.
Diversification Opportunities for Global Education and Harmony Gold
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Global and Harmony is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Global Education Communities 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 Global Education 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 Global Education Communities 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 Global Education i.e., Global Education and Harmony Gold go up and down completely randomly.
Pair Corralation between Global Education and Harmony Gold
Assuming the 90 days horizon Global Education is expected to generate 1.11 times less return on investment than Harmony Gold. In addition to that, Global Education is 1.67 times more volatile than Harmony Gold Mining. It trades about 0.05 of its total potential returns per unit of risk. Harmony Gold Mining is currently generating about 0.1 per unit of volatility. If you would invest 818.00 in Harmony Gold Mining on September 1, 2025 and sell it today you would earn a total of 872.00 from holding Harmony Gold Mining or generate 106.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 91.09% |
| Values | Daily Returns |
Global Education Communities vs. Harmony Gold Mining
Performance |
| Timeline |
| Global Education Com |
| Harmony Gold Mining |
Global Education and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Education and Harmony Gold
The main advantage of trading using opposite Global Education and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Education 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.| Global Education vs. China Resources Beer | Global Education vs. Jones Soda Co | Global Education vs. Taiwan Semiconductor Manufacturing | Global Education vs. Tsingtao Brewery |
| Harmony Gold vs. Ausnutria Dairy | Harmony Gold vs. Aldel Financial II | Harmony Gold vs. NH Foods Ltd | Harmony Gold vs. Sligro Food Group |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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