Correlation Between Aya Gold and Harmony Gold

Can any of the company-specific risk be diversified away by investing in both Aya Gold 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 Aya Gold and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aya Gold Silver and Harmony Gold Mining, you can compare the effects of market volatilities on Aya Gold 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 Aya Gold with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aya Gold and Harmony Gold.

Diversification Opportunities for Aya Gold and Harmony Gold

-0.4

Correlation Coefficient

Aya Gold  Harmony Gold

Very good diversification

The 3 months correlation between Aya and Harmony is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Aya Gold Silver 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 Aya Gold 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 Aya Gold Silver 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 Aya Gold i.e., Aya Gold and Harmony Gold go up and down completely randomly.

Pair Corralation between Aya Gold and Harmony Gold

Assuming the 90 days trading horizon Aya Gold Silver is expected to generate 1.24 times more return on investment than Harmony Gold. However, Aya Gold is 1.24 times more volatile than Harmony Gold Mining. It trades about 0.14 of its potential returns per unit of risk. Harmony Gold Mining is currently generating about -0.02 per unit of risk. If you would invest  630.00  in Aya Gold Silver on April 24, 2025 and sell it today you would earn a total of  232.00  from holding Aya Gold Silver or generate 36.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Aya Gold Silver  vs.  Harmony Gold Mining

Aya Gold Silver

Risk-Adjusted Performance

OK

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

Harmony Gold Mining

Risk-Adjusted Performance

Very Weak

Over the last 90 days Harmony Gold Mining has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Harmony Gold is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Aya Gold and Harmony Gold

The main advantage of trading using opposite Aya Gold and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aya Gold 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 Aya Gold Silver 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.