Correlation Between SLM Corp and Sasol
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By analyzing existing cross correlation between Sanlam and Sasol Ltd Bee, you can compare the effects of market volatilities on SLM Corp 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 SLM Corp with a short position of Sasol. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLM Corp and Sasol.
Diversification Opportunities for SLM Corp and Sasol
Very good diversification
The 3 months correlation between SLM and Sasol is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Sanlam 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 SLM Corp 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 Sanlam 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 SLM Corp i.e., SLM Corp and Sasol go up and down completely randomly.
Pair Corralation between SLM Corp and Sasol
Assuming the 90 days trading horizon Sanlam is expected to generate 0.35 times more return on investment than Sasol. However, Sanlam is 2.89 times less risky than Sasol. It trades about 0.11 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 420,381 in Sanlam on September 2, 2024 and sell it today you would earn a total of 460,619 from holding Sanlam or generate 109.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Sanlam vs. Sasol Ltd Bee
Performance |
| Timeline |
| SLM Corp |
| Sasol Ltd Bee |
SLM Corp and Sasol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SLM Corp and Sasol
The main advantage of trading using opposite SLM Corp and Sasol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLM Corp 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.| SLM Corp vs. Sasol Ltd Bee | SLM Corp vs. Centaur Bci Balanced | SLM Corp vs. Sabvest Capital | SLM Corp 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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