Correlation Between TAMBANG BATUBARA-B- and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both TAMBANG BATUBARA-B- 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 TAMBANG BATUBARA-B- and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TAMBANG BATUBARA B and Harmony Gold Mining, you can compare the effects of market volatilities on TAMBANG BATUBARA-B- 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 TAMBANG BATUBARA-B- with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of TAMBANG BATUBARA-B- and Harmony Gold.
Diversification Opportunities for TAMBANG BATUBARA-B- and Harmony Gold
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TAMBANG and Harmony is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding TAMBANG BATUBARA B 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 TAMBANG BATUBARA-B- 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 TAMBANG BATUBARA B 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 TAMBANG BATUBARA-B- i.e., TAMBANG BATUBARA-B- and Harmony Gold go up and down completely randomly.
Pair Corralation between TAMBANG BATUBARA-B- and Harmony Gold
Assuming the 90 days trading horizon TAMBANG BATUBARA B is expected to under-perform the Harmony Gold. But the stock apears to be less risky and, when comparing its historical volatility, TAMBANG BATUBARA B is 4.63 times less risky than Harmony Gold. The stock trades about -0.12 of its potential returns per unit of risk. The Harmony Gold Mining is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,224 in Harmony Gold Mining on July 11, 2025 and sell it today you would earn a total of 381.00 from holding Harmony Gold Mining or generate 31.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TAMBANG BATUBARA B vs. Harmony Gold Mining
Performance |
| Timeline |
| TAMBANG BATUBARA-B- |
| Harmony Gold Mining |
TAMBANG BATUBARA-B- and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TAMBANG BATUBARA-B- and Harmony Gold
The main advantage of trading using opposite TAMBANG BATUBARA-B- and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TAMBANG BATUBARA-B- 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.| TAMBANG BATUBARA-B- vs. Zijin Mining Group | TAMBANG BATUBARA-B- vs. DeVry Education Group | TAMBANG BATUBARA-B- vs. Xinhua Winshare Publishing | TAMBANG BATUBARA-B- vs. MCEWEN MINING INC |
| Harmony Gold vs. GigaMedia | Harmony Gold vs. HYATT HOTELS A | Harmony Gold vs. MIRAMAR HOTEL INV | Harmony Gold vs. GAMESTOP |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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