Correlation Between Aylett Balanced and Sasol
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By analyzing existing cross correlation between Aylett Balanced Prescient and Sasol Ltd Bee, you can compare the effects of market volatilities on Aylett 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 Aylett Balanced with a short position of Sasol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aylett Balanced and Sasol.
Diversification Opportunities for Aylett Balanced and Sasol
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aylett and Sasol is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Aylett Balanced Prescient 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 Aylett 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 Aylett Balanced Prescient 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 Aylett Balanced i.e., Aylett Balanced and Sasol go up and down completely randomly.
Pair Corralation between Aylett Balanced and Sasol
Assuming the 90 days trading horizon Aylett Balanced Prescient is expected to generate 0.22 times more return on investment than Sasol. However, Aylett Balanced Prescient is 4.55 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 -0.08 per unit of risk. If you would invest 202.00 in Aylett Balanced Prescient on September 3, 2024 and sell it today you would earn a total of 22.00 from holding Aylett Balanced Prescient or generate 10.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.06% |
| Values | Daily Returns |
Aylett Balanced Prescient vs. Sasol Ltd Bee
Performance |
| Timeline |
| Aylett Balanced Prescient |
| Sasol Ltd Bee |
Aylett Balanced and Sasol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aylett Balanced and Sasol
The main advantage of trading using opposite Aylett Balanced and Sasol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aylett 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.| Aylett Balanced vs. Sasol Ltd Bee | Aylett Balanced vs. Centaur Bci Balanced | Aylett Balanced vs. Sabvest Capital | Aylett Balanced 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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