Correlation Between Harmony Gold and ANTA Sports

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

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

Diversification Opportunities for Harmony Gold and ANTA Sports

-0.11

Correlation Coefficient

Harmony Gold  ANTA Sports

Good diversification

The 3 months correlation between Harmony and ANTA is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and ANTA Sports Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTA Sports Products and Harmony 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 Harmony Gold Mining are associated (or correlated) with ANTA Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANTA Sports Products has no effect on the direction of Harmony Gold i.e., Harmony Gold and ANTA Sports go up and down completely randomly.

Pair Corralation between Harmony Gold and ANTA Sports

Assuming the 90 days horizon Harmony Gold Mining is expected to under-perform the ANTA Sports. In addition to that, Harmony Gold is 1.23 times more volatile than ANTA Sports Products. It trades about -0.09 of its total potential returns per unit of risk. ANTA Sports Products is currently generating about 0.03 per unit of volatility. If you would invest  992.00  in ANTA Sports Products on April 20, 2025 and sell it today you would earn a total of  23.00  from holding ANTA Sports Products or generate 2.32% return on investment over 90 days.

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

Harmony Gold Mining  vs.  ANTA Sports Products

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 fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

ANTA Sports Products

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ANTA Sports Products are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, ANTA Sports is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Harmony Gold and ANTA Sports

The main advantage of trading using opposite Harmony Gold and ANTA Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Gold position performs unexpectedly, ANTA Sports 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 ANTA Sports will offset losses from the drop in ANTA Sports' long position.

The idea behind Harmony Gold Mining and ANTA Sports Products 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.