Correlation Between Ampersand Sanlam and Sasol
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By analyzing existing cross correlation between Ampersand Sanlam Collective and Sasol Ltd Bee, you can compare the effects of market volatilities on Ampersand Sanlam 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 Ampersand Sanlam with a short position of Sasol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ampersand Sanlam and Sasol.
Diversification Opportunities for Ampersand Sanlam and Sasol
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ampersand and Sasol is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Ampersand Sanlam Collective 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 Ampersand Sanlam 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 Ampersand Sanlam Collective 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 Ampersand Sanlam i.e., Ampersand Sanlam and Sasol go up and down completely randomly.
Pair Corralation between Ampersand Sanlam and Sasol
Assuming the 90 days trading horizon Ampersand Sanlam Collective is expected to generate 0.08 times more return on investment than Sasol. However, Ampersand Sanlam Collective is 11.85 times less risky than Sasol. It trades about 0.39 of its potential returns per unit of risk. Sasol Ltd Bee is currently generating about -0.32 per unit of risk. If you would invest 200.00 in Ampersand Sanlam Collective on September 3, 2024 and sell it today you would earn a total of 4.00 from holding Ampersand Sanlam Collective or generate 2.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Ampersand Sanlam Collective vs. Sasol Ltd Bee
Performance |
| Timeline |
| Ampersand Sanlam Col |
| Sasol Ltd Bee |
Ampersand Sanlam and Sasol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ampersand Sanlam and Sasol
The main advantage of trading using opposite Ampersand Sanlam and Sasol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ampersand Sanlam 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.| Ampersand Sanlam vs. Sasol Ltd Bee | Ampersand Sanlam vs. Centaur Bci Balanced | Ampersand Sanlam vs. Sabvest Capital | Ampersand Sanlam vs. Growthpoint Properties |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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