Correlation Between DRDGOLD Limited and Golden Phoenix

Can any of the company-specific risk be diversified away by investing in both DRDGOLD Limited and Golden Phoenix 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 Golden Phoenix 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 Golden Phoenix Minrl, you can compare the effects of market volatilities on DRDGOLD Limited and Golden Phoenix 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 Golden Phoenix. Check out your portfolio center. Please also check ongoing floating volatility patterns of DRDGOLD Limited and Golden Phoenix.

Diversification Opportunities for DRDGOLD Limited and Golden Phoenix

0.0

Correlation Coefficient

DRDGOLD Limited  Golden Phoenix

Pay attention - limited upside

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

Pair Corralation between DRDGOLD Limited and Golden Phoenix

If you would invest  1,523  in DRDGOLD Limited ADR on May 21, 2025 and sell it today you would lose (31.00) from holding DRDGOLD Limited ADR or give up 2.04% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

DRDGOLD Limited ADR  vs.  Golden Phoenix Minrl

DRDGOLD Limited ADR

Risk-Adjusted Performance

Weakest

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

Golden Phoenix Minrl

Risk-Adjusted Performance

Weakest

Over the last 90 days Golden Phoenix Minrl has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Golden Phoenix is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with DRDGOLD Limited and Golden Phoenix

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

The idea behind DRDGOLD Limited ADR and Golden Phoenix Minrl 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.