Correlation Between British Amer and Satrix Swix
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By analyzing existing cross correlation between British American Tobacco and Satrix Swix Top, you can compare the effects of market volatilities on British Amer and Satrix Swix 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 British Amer with a short position of Satrix Swix. Check out your portfolio center. Please also check ongoing floating volatility patterns of British Amer and Satrix Swix.
Diversification Opportunities for British Amer and Satrix Swix
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between British and Satrix is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding British American Tobacco and Satrix Swix Top in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Satrix Swix Top and British Amer 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 British American Tobacco are associated (or correlated) with Satrix Swix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Satrix Swix Top has no effect on the direction of British Amer i.e., British Amer and Satrix Swix go up and down completely randomly.
Pair Corralation between British Amer and Satrix Swix
Assuming the 90 days trading horizon British American Tobacco is expected to generate 1.38 times more return on investment than Satrix Swix. However, British Amer is 1.38 times more volatile than Satrix Swix Top. It trades about 0.35 of its potential returns per unit of risk. Satrix Swix Top is currently generating about 0.25 per unit of risk. If you would invest 6,373,100 in British American Tobacco on September 13, 2024 and sell it today you would earn a total of 389,800 from holding British American Tobacco or generate 6.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
British American Tobacco vs. Satrix Swix Top
Performance |
| Timeline |
| British American Tobacco |
| Satrix Swix Top |
British Amer and Satrix Swix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with British Amer and Satrix Swix
The main advantage of trading using opposite British Amer and Satrix Swix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if British Amer position performs unexpectedly, Satrix Swix 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 Satrix Swix will offset losses from the drop in Satrix Swix's long position.| British Amer vs. Sasol Ltd Bee | British Amer vs. AfricaRhodium ETF | British Amer vs. CoreShares Preference Share | British Amer vs. Indexco Limited |
| Satrix Swix vs. Centaur Bci Balanced | Satrix Swix vs. Europa Metals | Satrix Swix vs. British American Tobacco | Satrix Swix vs. Kap Industrial Holdings |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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