Correlation Between CoreShares and Sasol
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By analyzing existing cross correlation between CoreShares SP 500 and Sasol Ltd Bee, you can compare the effects of market volatilities on CoreShares 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 CoreShares with a short position of Sasol. Check out your portfolio center. Please also check ongoing floating volatility patterns of CoreShares and Sasol.
Diversification Opportunities for CoreShares and Sasol
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CoreShares and Sasol is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding CoreShares SP 500 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 CoreShares 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 CoreShares SP 500 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 CoreShares i.e., CoreShares and Sasol go up and down completely randomly.
Pair Corralation between CoreShares and Sasol
Assuming the 90 days trading horizon CoreShares SP 500 is expected to generate 0.14 times more return on investment than Sasol. However, CoreShares SP 500 is 7.19 times less risky than Sasol. It trades about -0.15 of its potential returns per unit of risk. Sasol Ltd Bee is currently generating about -0.28 per unit of risk. If you would invest 1,130,400 in CoreShares SP 500 on November 28, 2024 and sell it today you would lose (24,900) from holding CoreShares SP 500 or give up 2.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CoreShares SP 500 vs. Sasol Ltd Bee
Performance |
| Timeline |
| CoreShares SP 500 |
| Sasol Ltd Bee |
CoreShares and Sasol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CoreShares and Sasol
The main advantage of trading using opposite CoreShares and Sasol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CoreShares 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.| CoreShares vs. CoreShares SP Global | CoreShares vs. CoreShares Income AMETF | CoreShares vs. CoreShares Preference Share | CoreShares vs. CoreShares Yield Selected |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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