Correlation Between TOR Minerals and Sasol
Can any of the company-specific risk be diversified away by investing in both TOR Minerals and Sasol 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 TOR Minerals and Sasol into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TOR Minerals International and Sasol, you can compare the effects of market volatilities on TOR Minerals 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 TOR Minerals with a short position of Sasol. Check out your portfolio center. Please also check ongoing floating volatility patterns of TOR Minerals and Sasol.
Diversification Opportunities for TOR Minerals and Sasol
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TOR and Sasol is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding TOR Minerals International and Sasol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sasol and TOR Minerals 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 TOR Minerals International 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 TOR Minerals i.e., TOR Minerals and Sasol go up and down completely randomly.
Pair Corralation between TOR Minerals and Sasol
Given the investment horizon of 90 days TOR Minerals International is expected to generate 0.99 times more return on investment than Sasol. However, TOR Minerals International is 1.01 times less risky than Sasol. It trades about 0.2 of its potential returns per unit of risk. Sasol is currently generating about -0.06 per unit of risk. If you would invest 223.00 in TOR Minerals International on September 4, 2024 and sell it today you would earn a total of 47.00 from holding TOR Minerals International or generate 21.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 7.88% |
Values | Daily Returns |
TOR Minerals International vs. Sasol
Performance |
Timeline |
TOR Minerals Interna |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sasol |
TOR Minerals and Sasol Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with TOR Minerals and Sasol
The main advantage of trading using opposite TOR Minerals and Sasol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TOR Minerals 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.TOR Minerals vs. Core Molding Technologies | TOR Minerals vs. Neo Performance Materials | TOR Minerals vs. Avient Corp | TOR Minerals vs. Oil Dri |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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