Correlation Between Sasol and Coronation Global
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By analyzing existing cross correlation between Sasol Ltd Bee and Coronation Global Equity, you can compare the effects of market volatilities on Sasol and Coronation Global 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 Coronation Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sasol and Coronation Global.
Diversification Opportunities for Sasol and Coronation Global
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sasol and Coronation is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Sasol Ltd Bee and Coronation Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coronation Global Equity 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 Coronation Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coronation Global Equity has no effect on the direction of Sasol i.e., Sasol and Coronation Global go up and down completely randomly.
Pair Corralation between Sasol and Coronation Global
Assuming the 90 days trading horizon Sasol Ltd Bee is expected to under-perform the Coronation Global. In addition to that, Sasol is 2.25 times more volatile than Coronation Global Equity. It trades about -0.08 of its total potential returns per unit of risk. Coronation Global Equity is currently generating about 0.09 per unit of volatility. If you would invest 209.00 in Coronation Global Equity on September 2, 2024 and sell it today you would earn a total of 52.00 from holding Coronation Global Equity or generate 24.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Sasol Ltd Bee vs. Coronation Global Equity
Performance |
| Timeline |
| Sasol Ltd Bee |
| Coronation Global Equity |
Sasol and Coronation Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sasol and Coronation Global
The main advantage of trading using opposite Sasol and Coronation Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sasol position performs unexpectedly, Coronation Global 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 Coronation Global will offset losses from the drop in Coronation Global's long position.The idea behind Sasol Ltd Bee and Coronation Global Equity 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.| Coronation Global vs. Sasol Ltd Bee | Coronation Global vs. Centaur Bci Balanced | Coronation Global vs. Sabvest Capital | Coronation Global 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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