Correlation Between Harmony Gold and Walmart

Can any of the company-specific risk be diversified away by investing in both Harmony Gold and Walmart 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 Walmart 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 Walmart, you can compare the effects of market volatilities on Harmony Gold and Walmart 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 Walmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Gold and Walmart.

Diversification Opportunities for Harmony Gold and Walmart

0.09

Correlation Coefficient

Harmony Gold  Walmart

Significant diversification

The 3 months correlation between Harmony and Walmart is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Gold Mining and Walmart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walmart 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 Walmart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Walmart has no effect on the direction of Harmony Gold i.e., Harmony Gold and Walmart go up and down completely randomly.

Pair Corralation between Harmony Gold and Walmart

Assuming the 90 days trading horizon Harmony Gold is expected to generate 1.37 times less return on investment than Walmart. In addition to that, Harmony Gold is 1.99 times more volatile than Walmart. It trades about 0.03 of its total potential returns per unit of risk. Walmart is currently generating about 0.07 per unit of volatility. If you would invest  632,000  in Walmart on April 25, 2025 and sell it today you would earn a total of  42,000  from holding Walmart or generate 6.65% return on investment over 90 days.

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

Harmony Gold Mining  vs.  Walmart

Harmony Gold Mining

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Harmony Gold Mining are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Harmony Gold is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Walmart

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Walmart are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Walmart may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Harmony Gold and Walmart

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

The idea behind Harmony Gold Mining and Walmart 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.