Correlation Between Schroder European and Sasol
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By analyzing existing cross correlation between Schroder European Real and Sasol Ltd Bee, you can compare the effects of market volatilities on Schroder European 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 Schroder European with a short position of Sasol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schroder European and Sasol.
Diversification Opportunities for Schroder European and Sasol
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Schroder and Sasol is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Schroder European Real 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 Schroder European 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 Schroder European Real 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 Schroder European i.e., Schroder European and Sasol go up and down completely randomly.
Pair Corralation between Schroder European and Sasol
Assuming the 90 days trading horizon Schroder European Real is expected to generate 0.18 times more return on investment than Sasol. However, Schroder European Real is 5.52 times less risky than Sasol. It trades about -0.05 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 199,400 in Schroder European Real on September 3, 2024 and sell it today you would lose (34,400) from holding Schroder European Real or give up 17.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Schroder European Real vs. Sasol Ltd Bee
Performance |
| Timeline |
| Schroder European Real |
| Sasol Ltd Bee |
Schroder European and Sasol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schroder European and Sasol
The main advantage of trading using opposite Schroder European and Sasol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schroder European 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.| Schroder European vs. Sasol Ltd Bee | Schroder European vs. Centaur Bci Balanced | Schroder European vs. Sabvest Capital | Schroder European vs. Growthpoint Properties |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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