Correlation Between African Media and Sasol
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By analyzing existing cross correlation between African Media Entertainment and Sasol Ltd Bee, you can compare the effects of market volatilities on African Media 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 African Media with a short position of Sasol. Check out your portfolio center. Please also check ongoing floating volatility patterns of African Media and Sasol.
Diversification Opportunities for African Media and Sasol
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between African and Sasol is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding African Media Entertainment 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 African Media 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 African Media Entertainment 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 African Media i.e., African Media and Sasol go up and down completely randomly.
Pair Corralation between African Media and Sasol
Assuming the 90 days trading horizon African Media Entertainment is expected to generate 1.11 times more return on investment than Sasol. However, African Media is 1.11 times more volatile than Sasol Ltd Bee. It trades about -0.07 of its potential returns per unit of risk. Sasol Ltd Bee is currently generating about -0.35 per unit of risk. If you would invest 415,000 in African Media Entertainment on August 24, 2024 and sell it today you would lose (25,000) from holding African Media Entertainment or give up 6.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
African Media Entertainment vs. Sasol Ltd Bee
Performance |
| Timeline |
| African Media Entert |
| Sasol Ltd Bee |
African Media and Sasol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with African Media and Sasol
The main advantage of trading using opposite African Media and Sasol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if African Media 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.| African Media vs. Sasol Ltd Bee | African Media vs. Centaur Bci Balanced | African Media vs. Sabvest Capital | African Media 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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