Correlation Between CoreShares TotalWldStock and Sasol
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By analyzing existing cross correlation between CoreShares TotalWldStock ETF and Sasol Ltd Bee, you can compare the effects of market volatilities on CoreShares TotalWldStock 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 TotalWldStock with a short position of Sasol. Check out your portfolio center. Please also check ongoing floating volatility patterns of CoreShares TotalWldStock and Sasol.
Diversification Opportunities for CoreShares TotalWldStock and Sasol
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CoreShares and Sasol is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding CoreShares TotalWldStock ETF 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 TotalWldStock 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 TotalWldStock ETF 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 TotalWldStock i.e., CoreShares TotalWldStock and Sasol go up and down completely randomly.
Pair Corralation between CoreShares TotalWldStock and Sasol
Assuming the 90 days trading horizon CoreShares TotalWldStock ETF is expected to generate 0.36 times more return on investment than Sasol. However, CoreShares TotalWldStock ETF is 2.77 times less risky than Sasol. It trades about 0.14 of its potential returns per unit of risk. Sasol Ltd Bee is currently generating about -0.36 per unit of risk. If you would invest 151,300 in CoreShares TotalWldStock ETF on August 27, 2024 and sell it today you would earn a total of 4,900 from holding CoreShares TotalWldStock ETF or generate 3.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CoreShares TotalWldStock ETF vs. Sasol Ltd Bee
Performance |
| Timeline |
| CoreShares TotalWldStock |
| Sasol Ltd Bee |
CoreShares TotalWldStock and Sasol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CoreShares TotalWldStock and Sasol
The main advantage of trading using opposite CoreShares TotalWldStock and Sasol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CoreShares TotalWldStock 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 TotalWldStock vs. Europa Metals | CoreShares TotalWldStock vs. British American Tobacco | CoreShares TotalWldStock vs. Kap Industrial Holdings | CoreShares TotalWldStock vs. Anglo American Platinum |
| Sasol vs. Europa Metals | Sasol vs. British American Tobacco | Sasol vs. Kap Industrial Holdings | Sasol vs. Anglo American Platinum |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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