Correlation Between Celanese and DRDGOLD Limited
Can any of the company-specific risk be diversified away by investing in both Celanese and DRDGOLD Limited 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 Celanese and DRDGOLD Limited into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celanese and DRDGOLD Limited ADR, you can compare the effects of market volatilities on Celanese and DRDGOLD Limited 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 Celanese with a short position of DRDGOLD Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celanese and DRDGOLD Limited.
Diversification Opportunities for Celanese and DRDGOLD Limited
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Celanese and DRDGOLD is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Celanese and DRDGOLD Limited ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DRDGOLD Limited ADR and Celanese 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 Celanese are associated (or correlated) with DRDGOLD Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DRDGOLD Limited ADR has no effect on the direction of Celanese i.e., Celanese and DRDGOLD Limited go up and down completely randomly.
Pair Corralation between Celanese and DRDGOLD Limited
Allowing for the 90-day total investment horizon Celanese is expected to generate 6.04 times less return on investment than DRDGOLD Limited. In addition to that, Celanese is 1.2 times more volatile than DRDGOLD Limited ADR. It trades about 0.01 of its total potential returns per unit of risk. DRDGOLD Limited ADR is currently generating about 0.04 per unit of volatility. If you would invest 1,349 in DRDGOLD Limited ADR on March 16, 2025 and sell it today you would earn a total of 80.00 from holding DRDGOLD Limited ADR or generate 5.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celanese vs. DRDGOLD Limited ADR
Performance |
| Timeline |
| Celanese |
| DRDGOLD Limited ADR |
Celanese and DRDGOLD Limited Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celanese and DRDGOLD Limited
The main advantage of trading using opposite Celanese and DRDGOLD Limited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celanese position performs unexpectedly, DRDGOLD Limited 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 Limited will offset losses from the drop in DRDGOLD Limited's long position.| Celanese vs. Tronox Holdings PLC | Celanese vs. Green Plains Renewable | Celanese vs. Lsb Industries | Celanese vs. Valhi Inc |
| DRDGOLD Limited vs. Osisko Gold Ro | DRDGOLD Limited vs. Eldorado Gold Corp | DRDGOLD Limited vs. SSR Mining | DRDGOLD Limited vs. Idaho Strategic Resources |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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