Correlation Between Intel Corp and Harmony Gold

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

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

Diversification Opportunities for Intel Corp and Harmony Gold

0.33

Correlation Coefficient

Intel Corp  Harmony Gold

Weak diversification

The 3 months correlation between Intel and Harmony is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Intel Corp CEDEAR 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 Intel Corp 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 Intel Corp CEDEAR 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 Intel Corp i.e., Intel Corp and Harmony Gold go up and down completely randomly.

Pair Corralation between Intel Corp and Harmony Gold

Assuming the 90 days trading horizon Intel Corp is expected to generate 1.35 times less return on investment than Harmony Gold. But when comparing it to its historical volatility, Intel Corp CEDEAR is 1.1 times less risky than Harmony Gold. It trades about 0.1 of its potential returns per unit of risk. Harmony Gold Mining is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  1,685,000  in Harmony Gold Mining on May 16, 2025 and sell it today you would earn a total of  357,500  from holding Harmony Gold Mining or generate 21.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Intel Corp CEDEAR  vs.  Harmony Gold Mining

Intel Corp CEDEAR

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Intel Corp CEDEAR are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Intel Corp sustained solid returns over the last few months and may actually be approaching a breakup point.

Harmony Gold Mining

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Harmony Gold Mining are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Harmony Gold sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intel Corp and Harmony Gold

The main advantage of trading using opposite Intel Corp and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel Corp 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 Intel Corp CEDEAR 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.