Correlation Between ONESAVINGS BANK and Sanlam Global

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

By analyzing existing cross correlation between ONESAVINGS BANK FXD and Sanlam Global Artificial, you can compare the effects of market volatilities on ONESAVINGS BANK and Sanlam Global 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 ONESAVINGS BANK with a short position of Sanlam Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of ONESAVINGS BANK and Sanlam Global.

Diversification Opportunities for ONESAVINGS BANK and Sanlam Global

0.0

Correlation Coefficient

ONESAVINGS BANK  Sanlam Global

Pay attention - limited upside

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

Pair Corralation between ONESAVINGS BANK and Sanlam Global

If you would invest (100.00) in ONESAVINGS BANK FXD on December 26, 2024 and sell it today you would earn a total of  100.00  from holding ONESAVINGS BANK FXD or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

ONESAVINGS BANK FXD  vs.  Sanlam Global Artificial

ONESAVINGS BANK FXD

Risk-Adjusted Performance

Very Weak

Over the last 90 days ONESAVINGS BANK FXD has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong fundamental drivers, ONESAVINGS BANK is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Sanlam Global Artificial

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sanlam Global Artificial has generated negative risk-adjusted returns adding no value to fund investors. Even with uncertain performance in the last few months, the Fund's technical and fundamental indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the fund retail investors.

Pair Trading with ONESAVINGS BANK and Sanlam Global

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

The idea behind ONESAVINGS BANK FXD and Sanlam Global Artificial 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.