Correlation Between DRDGOLD Limited and SSR Mining
Can any of the company-specific risk be diversified away by investing in both DRDGOLD Limited and SSR Mining 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 SSR Mining 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 SSR Mining, you can compare the effects of market volatilities on DRDGOLD Limited and SSR Mining 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 SSR Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of DRDGOLD Limited and SSR Mining.
Diversification Opportunities for DRDGOLD Limited and SSR Mining
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between DRDGOLD and SSR is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding DRDGOLD Limited ADR and SSR Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSR Mining 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 SSR Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSR Mining has no effect on the direction of DRDGOLD Limited i.e., DRDGOLD Limited and SSR Mining go up and down completely randomly.
Pair Corralation between DRDGOLD Limited and SSR Mining
Considering the 90-day investment horizon DRDGOLD Limited is expected to generate 4.94 times less return on investment than SSR Mining. But when comparing it to its historical volatility, DRDGOLD Limited ADR is 1.07 times less risky than SSR Mining. It trades about 0.05 of its potential returns per unit of risk. SSR Mining is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,074 in SSR Mining on May 16, 2025 and sell it today you would earn a total of 561.00 from holding SSR Mining or generate 52.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
DRDGOLD Limited ADR vs. SSR Mining
Performance |
Timeline |
DRDGOLD Limited ADR |
SSR Mining |
DRDGOLD Limited and SSR Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with DRDGOLD Limited and SSR Mining
The main advantage of trading using opposite DRDGOLD Limited and SSR Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DRDGOLD Limited position performs unexpectedly, SSR Mining 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 SSR Mining will offset losses from the drop in SSR Mining's long position.DRDGOLD Limited vs. Alamos Gold | DRDGOLD Limited vs. B2Gold Corp | DRDGOLD Limited vs. Centerra Gold | DRDGOLD Limited vs. Eldorado Gold Corp |
SSR Mining vs. Centerra Gold | SSR Mining vs. Gold Fields Ltd | SSR Mining vs. Eldorado Gold Corp | SSR Mining vs. Osisko Gold Ro |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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