Correlation Between TriSalus Life and Harmony Gold

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Can any of the company-specific risk be diversified away by investing in both TriSalus Life 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 TriSalus Life and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TriSalus Life Sciences and Harmony Gold Mining, you can compare the effects of market volatilities on TriSalus Life 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 TriSalus Life with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of TriSalus Life and Harmony Gold.

Diversification Opportunities for TriSalus Life and Harmony Gold

-0.27
  Correlation Coefficient

Very good diversification

The 3 months correlation between TriSalus and Harmony is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding TriSalus Life Sciences 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 TriSalus Life 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 TriSalus Life Sciences 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 TriSalus Life i.e., TriSalus Life and Harmony Gold go up and down completely randomly.

Pair Corralation between TriSalus Life and Harmony Gold

Given the investment horizon of 90 days TriSalus Life is expected to generate 1.02 times less return on investment than Harmony Gold. In addition to that, TriSalus Life is 1.18 times more volatile than Harmony Gold Mining. It trades about 0.11 of its total potential returns per unit of risk. Harmony Gold Mining is currently generating about 0.13 per unit of volatility. If you would invest  1,323  in Harmony Gold Mining on August 30, 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 Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

TriSalus Life Sciences  vs.  Harmony Gold Mining

 Performance 
       Timeline  
TriSalus Life Sciences 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in TriSalus Life Sciences are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly fragile basic indicators, TriSalus Life demonstrated solid returns over the last few months and may actually be approaching a breakup point.
Harmony Gold Mining 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Harmony Gold Mining are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, Harmony Gold reported solid returns over the last few months and may actually be approaching a breakup point.

TriSalus Life and Harmony Gold Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with TriSalus Life and Harmony Gold

The main advantage of trading using opposite TriSalus Life and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TriSalus Life 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.
The idea behind TriSalus Life Sciences and Harmony Gold Mining pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Global Correlations module to find global opportunities by holding instruments from different markets.

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