Correlation Between DRDGOLD Limited and Generationome Properties

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

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

Diversification Opportunities for DRDGOLD Limited and Generationome Properties

-0.45

Correlation Coefficient

DRDGOLD Limited  Generationome Properties

Very good diversification

The 3 months correlation between DRDGOLD and Generationome is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding DRDGOLD Limited ADR and Generationome Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Generationome Properties and DRDGOLD Limited 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 Limited ADR are associated (or correlated) with Generationome Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Generationome Properties has no effect on the direction of DRDGOLD Limited i.e., DRDGOLD Limited and Generationome Properties go up and down completely randomly.

Pair Corralation between DRDGOLD Limited and Generationome Properties

Considering the 90-day investment horizon DRDGOLD Limited ADR is expected to generate 0.55 times more return on investment than Generationome Properties. However, DRDGOLD Limited ADR is 1.82 times less risky than Generationome Properties. It trades about 0.71 of its potential returns per unit of risk. Generationome Properties is currently generating about 0.03 per unit of risk. If you would invest  1,830  in DRDGOLD Limited ADR on June 30, 2025 and sell it today you would earn a total of  1,011  from holding DRDGOLD Limited ADR or generate 55.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

DRDGOLD Limited ADR  vs.  Generationome Properties

DRDGOLD Limited ADR

Risk-Adjusted Performance

High

Compared to the overall equity markets, risk-adjusted returns on investments in DRDGOLD Limited ADR are ranked lower than 31 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent basic indicators, DRDGOLD Limited exhibited solid returns over the last few months and may actually be approaching a breakup point.

Generationome Properties

Risk-Adjusted Performance

Weakest

Over the last 90 days Generationome Properties has generated negative risk-adjusted returns adding no value to investors with long positions. Even with abnormal performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in October 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with DRDGOLD Limited and Generationome Properties

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

The idea behind DRDGOLD Limited ADR and Generationome Properties 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.