Correlation Between Centaur Bci and Sasol
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By analyzing existing cross correlation between Centaur Bci Balanced and Sasol Ltd Bee, you can compare the effects of market volatilities on Centaur 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 Centaur Bci with a short position of Sasol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centaur Bci and Sasol.
Diversification Opportunities for Centaur Bci and Sasol
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Centaur and Sasol is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Centaur 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 Centaur 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 Centaur 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 Centaur Bci i.e., Centaur Bci and Sasol go up and down completely randomly.
Pair Corralation between Centaur Bci and Sasol
Assuming the 90 days trading horizon Centaur Bci Balanced is expected to generate 0.13 times more return on investment than Sasol. However, Centaur Bci Balanced is 7.87 times less risky than Sasol. It trades about 0.09 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 191.00 in Centaur Bci Balanced on August 27, 2024 and sell it today you would earn a total of 51.00 from holding Centaur Bci Balanced or generate 26.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.98% |
| Values | Daily Returns |
Centaur Bci Balanced vs. Sasol Ltd Bee
Performance |
| Timeline |
| Centaur Bci Balanced |
| Sasol Ltd Bee |
Centaur Bci and Sasol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centaur Bci and Sasol
The main advantage of trading using opposite Centaur Bci and Sasol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centaur 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.| Centaur Bci vs. Sabvest Capital | Centaur Bci vs. Growthpoint Properties | Centaur Bci vs. AfricaRhodium ETF | Centaur Bci vs. CoreShares Preference Share |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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