Correlation Between Coronation Balanced and Sasol
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By analyzing existing cross correlation between Coronation Balanced Plus and Sasol Ltd Bee, you can compare the effects of market volatilities on Coronation Balanced 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 Coronation Balanced with a short position of Sasol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coronation Balanced and Sasol.
Diversification Opportunities for Coronation Balanced and Sasol
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Coronation and Sasol is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Coronation Balanced Plus 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 Coronation Balanced 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 Coronation Balanced Plus 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 Coronation Balanced i.e., Coronation Balanced and Sasol go up and down completely randomly.
Pair Corralation between Coronation Balanced and Sasol
Assuming the 90 days trading horizon Coronation Balanced Plus is expected to generate 0.14 times more return on investment than Sasol. However, Coronation Balanced Plus is 7.35 times less risky than Sasol. It trades about 0.46 of its potential returns per unit of risk. Sasol Ltd Bee is currently generating about -0.31 per unit of risk. If you would invest 15,657 in Coronation Balanced Plus on September 5, 2024 and sell it today you would earn a total of 688.00 from holding Coronation Balanced Plus or generate 4.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Coronation Balanced Plus vs. Sasol Ltd Bee
Performance |
| Timeline |
| Coronation Balanced Plus |
| Sasol Ltd Bee |
Coronation Balanced and Sasol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coronation Balanced and Sasol
The main advantage of trading using opposite Coronation Balanced and Sasol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coronation Balanced 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.| Coronation Balanced vs. Coronation Industrial | Coronation Balanced vs. Coronation Capital Plus | Coronation Balanced vs. Coronation Global Equity | Coronation Balanced vs. Coronation Financial |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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