Correlation Between Net Lease and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both Net Lease 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 Net Lease and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Net Lease Office and Harmony Gold Mining, you can compare the effects of market volatilities on Net Lease 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 Net Lease with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Net Lease and Harmony Gold.
Diversification Opportunities for Net Lease and Harmony Gold
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Net and Harmony is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Net Lease Office 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 Net Lease 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 Net Lease Office 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 Net Lease i.e., Net Lease and Harmony Gold go up and down completely randomly.
Pair Corralation between Net Lease and Harmony Gold
Given the investment horizon of 90 days Net Lease is expected to generate 41.55 times less return on investment than Harmony Gold. But when comparing it to its historical volatility, Net Lease Office is 3.61 times less risky than Harmony Gold. It trades about 0.01 of its potential returns per unit of risk. Harmony Gold Mining is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,323 in Harmony Gold Mining on September 3, 2025 and sell it today you would earn a total of 367.00 from holding Harmony Gold Mining or generate 27.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Net Lease Office vs. Harmony Gold Mining
Performance |
| Timeline |
| Net Lease Office |
| Harmony Gold Mining |
Net Lease and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Net Lease and Harmony Gold
The main advantage of trading using opposite Net Lease and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Net Lease 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.| Net Lease vs. China Cgame | Net Lease vs. Global Gaming Technologies | Net Lease vs. Broadstone Net Lease | Net Lease vs. Sharplink Gaming |
| Harmony Gold vs. Net Lease Office | Harmony Gold vs. Air Lease | Harmony Gold vs. Gladstone Investment | Harmony Gold vs. Compass Diversified Holdings |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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