Correlation Between Drdgold and Kinross Gold
Can any of the company-specific risk be diversified away by investing in both Drdgold and Kinross 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 Drdgold and Kinross Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Drdgold and Kinross Gold, you can compare the effects of market volatilities on Drdgold and Kinross 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 Drdgold with a short position of Kinross Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Drdgold and Kinross Gold.
Diversification Opportunities for Drdgold and Kinross Gold
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Drdgold and Kinross is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Drdgold and Kinross Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinross Gold and Drdgold 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 Drdgold are associated (or correlated) with Kinross Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinross Gold has no effect on the direction of Drdgold i.e., Drdgold and Kinross Gold go up and down completely randomly.
Pair Corralation between Drdgold and Kinross Gold
If you would invest 96.00 in Drdgold on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Drdgold or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Drdgold vs. Kinross Gold
Performance |
| Timeline |
| Drdgold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Strong
| Kinross Gold |
Drdgold and Kinross Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Drdgold and Kinross Gold
The main advantage of trading using opposite Drdgold and Kinross Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Drdgold position performs unexpectedly, Kinross 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 Kinross Gold will offset losses from the drop in Kinross Gold's long position.| Drdgold vs. Alkane Resources Limited | Drdgold vs. Evolution Mining | Drdgold vs. Dundee Precious Metals | Drdgold vs. Northern Star Resources |
| Kinross Gold vs. Fortitude Gold Corp | Kinross Gold vs. New Gold | Kinross Gold vs. Galiano Gold | Kinross Gold vs. GoldMining |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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