Correlation Between Denker SCI and Sasol
Specify exactly 2 symbols:
By analyzing existing cross correlation between Denker SCI Balanced and Sasol Ltd Bee, you can compare the effects of market volatilities on Denker SCI 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 Denker SCI with a short position of Sasol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Denker SCI and Sasol.
Diversification Opportunities for Denker SCI and Sasol
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Denker and Sasol is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Denker SCI 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 Denker SCI 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 Denker SCI 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 Denker SCI i.e., Denker SCI and Sasol go up and down completely randomly.
Pair Corralation between Denker SCI and Sasol
Assuming the 90 days trading horizon Denker SCI Balanced is expected to generate 0.1 times more return on investment than Sasol. However, Denker SCI Balanced is 10.04 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 1,359 in Denker SCI Balanced on September 12, 2024 and sell it today you would earn a total of 271.00 from holding Denker SCI Balanced or generate 19.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Denker SCI Balanced vs. Sasol Ltd Bee
Performance |
| Timeline |
| Denker SCI Balanced |
| Sasol Ltd Bee |
Denker SCI and Sasol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Denker SCI and Sasol
The main advantage of trading using opposite Denker SCI and Sasol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Denker SCI 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.| Denker SCI vs. 4d Bci Moderate | Denker SCI vs. Coronation Global Optimum | Denker SCI vs. Absa Multi managed Absolute | Denker SCI 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |