Correlation Between PT Astra and Drdgold

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

By analyzing existing cross correlation between PT Astra International and Drdgold, you can compare the effects of market volatilities on PT Astra and Drdgold 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 PT Astra with a short position of Drdgold. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Drdgold.

Diversification Opportunities for PT Astra and Drdgold

-0.32

Correlation Coefficient

PT Astra  Drdgold

Very good diversification

The 3 months correlation between PTAIF and Drdgold is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Drdgold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Drdgold and PT Astra 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 PT Astra International are associated (or correlated) with Drdgold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Drdgold has no effect on the direction of PT Astra i.e., PT Astra and Drdgold go up and down completely randomly.

Pair Corralation between PT Astra and Drdgold

Assuming the 90 days horizon PT Astra International is expected to under-perform the Drdgold. But the pink sheet apears to be less risky and, when comparing its historical volatility, PT Astra International is 7.22 times less risky than Drdgold. The pink sheet trades about -0.19 of its potential returns per unit of risk. The Drdgold is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  216.00  in Drdgold on September 4, 2025 and sell it today you would earn a total of  58.00  from holding Drdgold or generate 26.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	46.03%
Values	Daily Returns

PT Astra International  vs.  Drdgold

PT Astra International

Risk-Adjusted Performance

Weakest

Over the last 90 days PT Astra International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's forward indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Drdgold

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Drdgold are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Drdgold reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PT Astra and Drdgold

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

The idea behind PT Astra International and Drdgold 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.