Correlation Between Bytes Technology and Sasol
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By analyzing existing cross correlation between Bytes Technology and Sasol Ltd Bee, you can compare the effects of market volatilities on Bytes Technology 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 Bytes Technology with a short position of Sasol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bytes Technology and Sasol.
Diversification Opportunities for Bytes Technology and Sasol
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bytes and Sasol is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Bytes Technology 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 Bytes Technology 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 Bytes Technology 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 Bytes Technology i.e., Bytes Technology and Sasol go up and down completely randomly.
Pair Corralation between Bytes Technology and Sasol
Assuming the 90 days trading horizon Bytes Technology is expected to generate 0.47 times more return on investment than Sasol. However, Bytes Technology is 2.11 times less risky than Sasol. It trades about 0.01 of its potential returns per unit of risk. Sasol Ltd Bee is currently generating about -0.31 per unit of risk. If you would invest 1,042,588 in Bytes Technology on September 2, 2024 and sell it today you would earn a total of 1,412 from holding Bytes Technology or generate 0.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bytes Technology vs. Sasol Ltd Bee
Performance |
| Timeline |
| Bytes Technology |
| Sasol Ltd Bee |
Bytes Technology and Sasol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bytes Technology and Sasol
The main advantage of trading using opposite Bytes Technology and Sasol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bytes Technology 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.| Bytes Technology vs. Sasol Ltd Bee | Bytes Technology vs. Growthpoint Properties | Bytes Technology vs. AfricaRhodium ETF | Bytes Technology vs. CoreShares Preference Share |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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