Correlation Between NYSE Composite and SASOL
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By analyzing existing cross correlation between NYSE Composite and SASOL FING USA, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of SASOL. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and SASOL.
Diversification Opportunities for NYSE Composite and SASOL
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between NYSE and SASOL is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and SASOL go up and down completely randomly.
Pair Corralation between NYSE Composite and SASOL
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.64 times more return on investment than SASOL. However, NYSE Composite is 1.55 times less risky than SASOL. It trades about 0.08 of its potential returns per unit of risk. SASOL FING USA is currently generating about 0.01 per unit of risk. If you would invest 1,557,252 in NYSE Composite on November 9, 2024 and sell it today you would earn a total of 458,506 from holding NYSE Composite or generate 29.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 59.03% |
| Values | Daily Returns |
NYSE Composite vs. SASOL FING USA
Performance |
| Timeline |
NYSE Composite and SASOL Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
SASOL FING USA
Pair trading matchups for SASOL
Pair Trading with NYSE Composite and SASOL
The main advantage of trading using opposite NYSE Composite and SASOL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Integrated Media Technology | NYSE Composite vs. Custom Truck One | NYSE Composite vs. Funko Inc | NYSE Composite vs. Multi Ways 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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