Correlation Between Sabvest Capital and ArcelorMittal South

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

By analyzing existing cross correlation between Sabvest Capital and ArcelorMittal South Africa, you can compare the effects of market volatilities on Sabvest Capital and ArcelorMittal South 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 Sabvest Capital with a short position of ArcelorMittal South. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabvest Capital and ArcelorMittal South.

Diversification Opportunities for Sabvest Capital and ArcelorMittal South

0.0

Correlation Coefficient

Sabvest Capital  ArcelorMittal South

Pay attention - limited upside

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

Pair Corralation between Sabvest Capital and ArcelorMittal South

If you would invest  13,400  in ArcelorMittal South Africa on December 31, 2024 and sell it today you would lose (800.00) from holding ArcelorMittal South Africa or give up 5.97% of portfolio value over 90 days.

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

Sabvest Capital  vs.  ArcelorMittal South Africa

Sabvest Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sabvest Capital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Sabvest Capital is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

ArcelorMittal South

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ArcelorMittal South Africa are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, ArcelorMittal South may actually be approaching a critical reversion point that can send shares even higher in May 2025.

Pair Trading with Sabvest Capital and ArcelorMittal South

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

The idea behind Sabvest Capital and ArcelorMittal South Africa 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 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.