Correlation Between De Grey and Azimut Exploration

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

By analyzing existing cross correlation between De Grey Mining and Azimut Exploration, you can compare the effects of market volatilities on De Grey and Azimut Exploration 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 De Grey with a short position of Azimut Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of De Grey and Azimut Exploration.

Diversification Opportunities for De Grey and Azimut Exploration

0.27

Correlation Coefficient

De Grey  Azimut Exploration

Modest diversification

The 3 months correlation between DGMLF and Azimut is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding De Grey Mining and Azimut Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Azimut Exploration and De Grey 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 De Grey Mining are associated (or correlated) with Azimut Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Azimut Exploration has no effect on the direction of De Grey i.e., De Grey and Azimut Exploration go up and down completely randomly.

Pair Corralation between De Grey and Azimut Exploration

If you would invest  42.00  in Azimut Exploration on May 15, 2025 and sell it today you would earn a total of  1.00  from holding Azimut Exploration or generate 2.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	40.32%
Values	Daily Returns

De Grey Mining  vs.  Azimut Exploration

De Grey Mining

Risk-Adjusted Performance

Weakest

Over the last 90 days De Grey Mining has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable essential indicators, De Grey is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Azimut Exploration

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Azimut Exploration are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Azimut Exploration may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with De Grey and Azimut Exploration

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

The idea behind De Grey Mining and Azimut Exploration 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.