Correlation Between Dis Chem and Sasol
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By analyzing existing cross correlation between Dis Chem Pharmacies and Sasol Ltd Bee, you can compare the effects of market volatilities on Dis Chem 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 Dis Chem with a short position of Sasol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dis Chem and Sasol.
Diversification Opportunities for Dis Chem and Sasol
Very good diversification
The 3 months correlation between Dis and Sasol is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Dis Chem Pharmacies 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 Dis Chem 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 Dis Chem Pharmacies 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 Dis Chem i.e., Dis Chem and Sasol go up and down completely randomly.
Pair Corralation between Dis Chem and Sasol
Assuming the 90 days trading horizon Dis Chem Pharmacies is expected to generate 0.38 times more return on investment than Sasol. However, Dis Chem Pharmacies is 2.61 times less risky than Sasol. It trades about 0.04 of its potential returns per unit of risk. Sasol Ltd Bee is currently generating about -0.01 per unit of risk. If you would invest 297,747 in Dis Chem Pharmacies on August 30, 2024 and sell it today you would earn a total of 89,753 from holding Dis Chem Pharmacies or generate 30.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dis Chem Pharmacies vs. Sasol Ltd Bee
Performance |
| Timeline |
| Dis Chem Pharmacies |
| Sasol Ltd Bee |
Dis Chem and Sasol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dis Chem and Sasol
The main advantage of trading using opposite Dis Chem and Sasol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dis Chem 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.| Dis Chem vs. Standard Bank Group | Dis Chem vs. City Lodge Hotels | Dis Chem vs. Life Healthcare | Dis Chem vs. Hosken Consolidated Investments |
| Sasol vs. CoreShares Preference Share | Sasol vs. CoreShares TotalWldStock ETF | Sasol vs. CoreShares SP 500 | Sasol vs. CoreShares Income AMETF |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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