Correlation Between Libstar Holdings and Satrix Swix
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By analyzing existing cross correlation between Libstar Holdings and Satrix Swix Top, you can compare the effects of market volatilities on Libstar Holdings and Satrix Swix 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 Libstar Holdings with a short position of Satrix Swix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Libstar Holdings and Satrix Swix.
Diversification Opportunities for Libstar Holdings and Satrix Swix
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Libstar and Satrix is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Libstar Holdings and Satrix Swix Top in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Satrix Swix Top and Libstar Holdings 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 Libstar Holdings are associated (or correlated) with Satrix Swix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Satrix Swix Top has no effect on the direction of Libstar Holdings i.e., Libstar Holdings and Satrix Swix go up and down completely randomly.
Pair Corralation between Libstar Holdings and Satrix Swix
Assuming the 90 days trading horizon Libstar Holdings is expected to generate 3.26 times more return on investment than Satrix Swix. However, Libstar Holdings is 3.26 times more volatile than Satrix Swix Top. It trades about 0.02 of its potential returns per unit of risk. Satrix Swix Top is currently generating about 0.03 per unit of risk. If you would invest 38,133 in Libstar Holdings on September 12, 2024 and sell it today you would earn a total of 3,467 from holding Libstar Holdings or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Libstar Holdings vs. Satrix Swix Top
Performance |
| Timeline |
| Libstar Holdings |
| Satrix Swix Top |
Libstar Holdings and Satrix Swix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Libstar Holdings and Satrix Swix
The main advantage of trading using opposite Libstar Holdings and Satrix Swix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Libstar Holdings position performs unexpectedly, Satrix Swix 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 Satrix Swix will offset losses from the drop in Satrix Swix's long position.| Libstar Holdings vs. HomeChoice Investments | Libstar Holdings vs. Standard Bank Group | Libstar Holdings vs. Deneb Investments | Libstar Holdings vs. Hosken Consolidated Investments |
| Satrix Swix vs. Centaur Bci Balanced | Satrix Swix vs. Europa Metals | Satrix Swix vs. British American Tobacco | Satrix Swix vs. Kap Industrial Holdings |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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