Correlation Between Sasol and Aylett Balanced
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sasol Ltd Bee and Aylett Balanced Prescient, you can compare the effects of market volatilities on Sasol and Aylett Balanced 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 Aylett Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sasol and Aylett Balanced.
Diversification Opportunities for Sasol and Aylett Balanced
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sasol and Aylett is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Sasol Ltd Bee and Aylett Balanced Prescient in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aylett Balanced Prescient 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 Aylett Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aylett Balanced Prescient has no effect on the direction of Sasol i.e., Sasol and Aylett Balanced go up and down completely randomly.
Pair Corralation between Sasol and Aylett Balanced
Assuming the 90 days trading horizon Sasol Ltd Bee is expected to under-perform the Aylett Balanced. In addition to that, Sasol is 10.51 times more volatile than Aylett Balanced Prescient. It trades about -0.32 of its total potential returns per unit of risk. Aylett Balanced Prescient is currently generating about 0.46 per unit of volatility. If you would invest 218.00 in Aylett Balanced Prescient on September 3, 2024 and sell it today you would earn a total of 6.00 from holding Aylett Balanced Prescient or generate 2.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sasol Ltd Bee vs. Aylett Balanced Prescient
Performance |
| Timeline |
| Sasol Ltd Bee |
| Aylett Balanced Prescient |
Sasol and Aylett Balanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sasol and Aylett Balanced
The main advantage of trading using opposite Sasol and Aylett Balanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sasol position performs unexpectedly, Aylett Balanced 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 Aylett Balanced will offset losses from the drop in Aylett Balanced's long position.The idea behind Sasol Ltd Bee and Aylett Balanced Prescient 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.| Aylett Balanced vs. Sasol Ltd Bee | Aylett Balanced vs. Centaur Bci Balanced | Aylett Balanced vs. Sabvest Capital | Aylett Balanced 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |