Correlation Between Sasol and Centaur Bci
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By analyzing existing cross correlation between Sasol Ltd Bee and Centaur Bci Balanced, you can compare the effects of market volatilities on Sasol and Centaur Bci 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 Sasol with a short position of Centaur Bci. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sasol and Centaur Bci.
Diversification Opportunities for Sasol and Centaur Bci
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sasol and Centaur is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Sasol Ltd Bee and Centaur Bci Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centaur Bci Balanced and Sasol 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 Sasol Ltd Bee are associated (or correlated) with Centaur Bci. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centaur Bci Balanced has no effect on the direction of Sasol i.e., Sasol and Centaur Bci go up and down completely randomly.
Pair Corralation between Sasol and Centaur Bci
Assuming the 90 days trading horizon Sasol Ltd Bee is expected to under-perform the Centaur Bci. In addition to that, Sasol is 4.94 times more volatile than Centaur Bci Balanced. It trades about -0.1 of its total potential returns per unit of risk. Centaur Bci Balanced is currently generating about 0.11 per unit of volatility. If you would invest 224.00 in Centaur Bci Balanced on August 24, 2024 and sell it today you would earn a total of 17.00 from holding Centaur Bci Balanced or generate 7.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.4% |
| Values | Daily Returns |
Sasol Ltd Bee vs. Centaur Bci Balanced
Performance |
| Timeline |
| Sasol Ltd Bee |
| Centaur Bci Balanced |
Sasol and Centaur Bci Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sasol and Centaur Bci
The main advantage of trading using opposite Sasol and Centaur Bci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sasol position performs unexpectedly, Centaur Bci 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 Centaur Bci will offset losses from the drop in Centaur Bci's long position.The idea behind Sasol Ltd Bee and Centaur Bci Balanced pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Centaur Bci vs. Sasol Ltd Bee | Centaur Bci vs. Sabvest Capital | Centaur Bci vs. Growthpoint Properties | Centaur Bci vs. AfricaRhodium ETF |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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