Correlation Between Tamburi Investment and Harmony Gold

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

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

Diversification Opportunities for Tamburi Investment and Harmony Gold

-0.49

Correlation Coefficient

Tamburi Investment  Harmony Gold

Very good diversification

The 3 months correlation between Tamburi and Harmony is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Tamburi Investment Partners 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 Tamburi Investment 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 Tamburi Investment Partners 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 Tamburi Investment i.e., Tamburi Investment and Harmony Gold go up and down completely randomly.

Pair Corralation between Tamburi Investment and Harmony Gold

Assuming the 90 days horizon Tamburi Investment Partners is expected to generate 0.57 times more return on investment than Harmony Gold. However, Tamburi Investment Partners is 1.76 times less risky than Harmony Gold. It trades about 0.09 of its potential returns per unit of risk. Harmony Gold Mining is currently generating about -0.09 per unit of risk. If you would invest  704.00  in Tamburi Investment Partners on April 20, 2025 and sell it today you would earn a total of  76.00  from holding Tamburi Investment Partners or generate 10.8% return on investment over 90 days.

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

Tamburi Investment Partners  vs.  Harmony Gold Mining

Tamburi Investment

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Tamburi Investment Partners are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Tamburi Investment may actually be approaching a critical reversion point that can send shares even higher in August 2025.

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.

Pair Trading with Tamburi Investment and Harmony Gold

The main advantage of trading using opposite Tamburi Investment and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tamburi Investment 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 Tamburi Investment Partners 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.