Correlation Between Sasol and Sasol
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By analyzing existing cross correlation between Sasol Ltd Bee and Sasol, you can compare the effects of market volatilities on Sasol 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 Sasol with a short position of Sasol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sasol and Sasol.
Diversification Opportunities for Sasol and Sasol
Very weak diversification
The 3 months correlation between Sasol and Sasol is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Sasol Ltd Bee and Sasol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sasol 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 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 has no effect on the direction of Sasol i.e., Sasol and Sasol go up and down completely randomly.
Pair Corralation between Sasol and Sasol
Assuming the 90 days trading horizon Sasol Ltd Bee is expected to generate 3.31 times more return on investment than Sasol. However, Sasol is 3.31 times more volatile than Sasol. It trades about 0.0 of its potential returns per unit of risk. Sasol is currently generating about -0.04 per unit of risk. If you would invest 800,000 in Sasol Ltd Bee on December 4, 2024 and sell it today you would lose (290,000) from holding Sasol Ltd Bee or give up 36.25% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Sasol Ltd Bee vs. Sasol
Performance |
Timeline |
Sasol Ltd Bee |
Sasol |
Sasol and Sasol Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sasol and Sasol
The main advantage of trading using opposite Sasol and Sasol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sasol 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.The idea behind Sasol Ltd Bee and Sasol 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.Sasol vs. Hosken Consolidated Investments | Sasol vs. Zeder Investments | Sasol vs. Bytes Technology | Sasol vs. Brimstone Investment |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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