Correlation Between Custodian BCI and Sasol
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By analyzing existing cross correlation between Custodian BCI Balanced and Sasol Ltd Bee, you can compare the effects of market volatilities on Custodian BCI 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 Custodian BCI with a short position of Sasol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Custodian BCI and Sasol.
Diversification Opportunities for Custodian BCI and Sasol
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Custodian and Sasol is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Custodian BCI Balanced 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 Custodian BCI 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 Custodian BCI Balanced 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 Custodian BCI i.e., Custodian BCI and Sasol go up and down completely randomly.
Pair Corralation between Custodian BCI and Sasol
Assuming the 90 days trading horizon Custodian BCI Balanced is expected to generate 0.12 times more return on investment than Sasol. However, Custodian BCI Balanced is 8.32 times less risky than Sasol. It trades about 0.08 of its potential returns per unit of risk. Sasol Ltd Bee is currently generating about -0.01 per unit of risk. If you would invest 226.00 in Custodian BCI Balanced on September 12, 2024 and sell it today you would earn a total of 47.00 from holding Custodian BCI Balanced or generate 20.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.39% |
| Values | Daily Returns |
Custodian BCI Balanced vs. Sasol Ltd Bee
Performance |
| Timeline |
| Custodian BCI Balanced |
| Sasol Ltd Bee |
Custodian BCI and Sasol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Custodian BCI and Sasol
The main advantage of trading using opposite Custodian BCI and Sasol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Custodian BCI 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.| Custodian BCI vs. 4d Bci Moderate | Custodian BCI vs. Coronation Global Optimum | Custodian BCI vs. Absa Multi managed Absolute | Custodian BCI vs. Coronation Balanced Plus |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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