Correlation Between Unity Software and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both Unity Software 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 Unity Software and Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unity Software and Harmony Gold Mining, you can compare the effects of market volatilities on Unity Software 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 Unity Software with a short position of Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unity Software and Harmony Gold.
Diversification Opportunities for Unity Software and Harmony Gold
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Unity and Harmony is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Unity Software 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 Unity Software 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 Unity Software 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 Unity Software i.e., Unity Software and Harmony Gold go up and down completely randomly.
Pair Corralation between Unity Software and Harmony Gold
Assuming the 90 days horizon Unity Software is expected to generate 1.29 times more return on investment than Harmony Gold. However, Unity Software is 1.29 times more volatile than Harmony Gold Mining. It trades about 0.18 of its potential returns per unit of risk. Harmony Gold Mining is currently generating about -0.04 per unit of risk. If you would invest 1,957 in Unity Software on April 24, 2025 and sell it today you would earn a total of 1,108 from holding Unity Software or generate 56.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Unity Software vs. Harmony Gold Mining
Performance |
Timeline |
Unity Software |
Harmony Gold Mining |
Unity Software and Harmony Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Unity Software and Harmony Gold
The main advantage of trading using opposite Unity Software and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unity Software 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.Unity Software vs. RESMINING UNSPADR10 | Unity Software vs. GRIFFIN MINING LTD | Unity Software vs. FOKUS MINING P | Unity Software vs. Urban Outfitters |
Harmony Gold vs. Bio Techne Corp | Harmony Gold vs. PKSHA TECHNOLOGY INC | Harmony Gold vs. Rogers Communications | Harmony Gold vs. NetSol Technologies |
Check out your portfolio center.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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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