Correlation Between Coty and SASOL
Specify exactly 2 symbols:
By analyzing existing cross correlation between Coty Inc and SASOL FING USA, you can compare the effects of market volatilities on Coty 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 Coty with a short position of SASOL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coty and SASOL.
Diversification Opportunities for Coty and SASOL
Very weak diversification
The 3 months correlation between Coty and SASOL is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Coty Inc and SASOL FING USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SASOL FING USA and Coty 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 Coty Inc 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 FING USA has no effect on the direction of Coty i.e., Coty and SASOL go up and down completely randomly.
Pair Corralation between Coty and SASOL
Given the investment horizon of 90 days Coty Inc is expected to generate 1.19 times more return on investment than SASOL. However, Coty is 1.19 times more volatile than SASOL FING USA. It trades about -0.07 of its potential returns per unit of risk. SASOL FING USA is currently generating about -0.13 per unit of risk. If you would invest 767.00 in Coty Inc on August 29, 2024 and sell it today you would lose (26.00) from holding Coty Inc or give up 3.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Coty Inc vs. SASOL FING USA
Performance |
| Timeline |
| Coty Inc |
| SASOL FING USA |
Coty and SASOL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coty and SASOL
The main advantage of trading using opposite Coty and SASOL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coty 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.The idea behind Coty Inc and SASOL FING USA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| SASOL vs. Coty Inc | SASOL vs. JD Sports Fashion | SASOL vs. Lindblad Expeditions Holdings | SASOL vs. Canlan Ice Sports |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Stocks Directory Find actively traded stocks across global markets |