Correlation Between Astoria Investments and DRDGOLD

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

By analyzing existing cross correlation between Astoria Investments and DRDGOLD Limited, you can compare the effects of market volatilities on Astoria Investments and DRDGOLD 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 Astoria Investments with a short position of DRDGOLD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astoria Investments and DRDGOLD.

Diversification Opportunities for Astoria Investments and DRDGOLD

0.0

Correlation Coefficient

Astoria Investments  DRDGOLD

Pay attention - limited upside

The 3 months correlation between Astoria and DRDGOLD is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Astoria Investments and DRDGOLD Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DRDGOLD Limited and Astoria Investments 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 Astoria Investments are associated (or correlated) with DRDGOLD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DRDGOLD Limited has no effect on the direction of Astoria Investments i.e., Astoria Investments and DRDGOLD go up and down completely randomly.

Pair Corralation between Astoria Investments and DRDGOLD

If you would invest  0.00  in DRDGOLD Limited on December 22, 2024 and sell it today you would earn a total of  0.00  from holding DRDGOLD Limited or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

Astoria Investments  vs.  DRDGOLD Limited

Astoria Investments

Risk-Adjusted Performance

Very Weak

Over the last 90 days Astoria Investments has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Astoria Investments is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

DRDGOLD Limited

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in DRDGOLD Limited are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, DRDGOLD exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Astoria Investments and DRDGOLD

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

The idea behind Astoria Investments and DRDGOLD Limited 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..