Correlation Between Sasol and E Media
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By analyzing existing cross correlation between Sasol Ltd Bee and E Media Holdings, you can compare the effects of market volatilities on Sasol and E Media 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 Sasol with a short position of E Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sasol and E Media.
Diversification Opportunities for Sasol and E Media
Good diversification
The 3 months correlation between Sasol and EMH is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Sasol Ltd Bee and E Media Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Media Holdings and Sasol 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 Sasol Ltd Bee are associated (or correlated) with E Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Media Holdings has no effect on the direction of Sasol i.e., Sasol and E Media go up and down completely randomly.
Pair Corralation between Sasol and E Media
Assuming the 90 days trading horizon Sasol Ltd Bee is expected to under-perform the E Media. In addition to that, Sasol is 3.54 times more volatile than E Media Holdings. It trades about 0.0 of its total potential returns per unit of risk. E Media Holdings is currently generating about 0.03 per unit of volatility. If you would invest 34,300 in E Media Holdings on December 2, 2024 and sell it today you would earn a total of 900.00 from holding E Media Holdings or generate 2.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Sasol Ltd Bee vs. E Media Holdings
Performance |
Timeline |
Sasol Ltd Bee |
E Media Holdings |
Sasol and E Media Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sasol and E Media
The main advantage of trading using opposite Sasol and E Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sasol position performs unexpectedly, E Media 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 E Media will offset losses from the drop in E Media's long position.The idea behind Sasol Ltd Bee and E Media Holdings 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.E Media vs. Brimstone Investment | E Media vs. Capitec Bank Holdings | E Media vs. Astral Foods | E Media vs. Reinet Investments SCA |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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