Correlation Between NewWave Silver and Sasol
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By analyzing existing cross correlation between NewWave Silver Exchange and Sasol Ltd Bee, you can compare the effects of market volatilities on NewWave Silver and Sasol 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 NewWave Silver with a short position of Sasol. Check out your portfolio center. Please also check ongoing floating volatility patterns of NewWave Silver and Sasol.
Diversification Opportunities for NewWave Silver and Sasol
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NewWave and Sasol is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding NewWave Silver Exchange and Sasol Ltd Bee in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sasol Ltd Bee and NewWave Silver 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 NewWave Silver Exchange are associated (or correlated) with Sasol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sasol Ltd Bee has no effect on the direction of NewWave Silver i.e., NewWave Silver and Sasol go up and down completely randomly.
Pair Corralation between NewWave Silver and Sasol
Assuming the 90 days trading horizon NewWave Silver Exchange is expected to generate 0.27 times more return on investment than Sasol. However, NewWave Silver Exchange is 3.65 times less risky than Sasol. It trades about 0.05 of its potential returns per unit of risk. Sasol Ltd Bee is currently generating about 0.0 per unit of risk. If you would invest 39,300 in NewWave Silver Exchange on October 11, 2024 and sell it today you would earn a total of 15,000 from holding NewWave Silver Exchange or generate 38.17% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
NewWave Silver Exchange vs. Sasol Ltd Bee
Performance |
Timeline |
NewWave Silver Exchange |
Sasol Ltd Bee |
NewWave Silver and Sasol Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with NewWave Silver and Sasol
The main advantage of trading using opposite NewWave Silver and Sasol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NewWave Silver position performs unexpectedly, Sasol 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 Sasol will offset losses from the drop in Sasol's long position.NewWave Silver vs. Sasol Ltd Bee | NewWave Silver vs. Growthpoint Properties | NewWave Silver vs. AfricaRhodium ETF | NewWave Silver vs. CoreShares Preference Share |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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