Correlation Between Sasol and Bowler Metcalf
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By analyzing existing cross correlation between Sasol Ltd Bee and Bowler Metcalf, you can compare the effects of market volatilities on Sasol and Bowler Metcalf 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 Bowler Metcalf. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sasol and Bowler Metcalf.
Diversification Opportunities for Sasol and Bowler Metcalf
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sasol and Bowler is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Sasol Ltd Bee and Bowler Metcalf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bowler Metcalf 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 Bowler Metcalf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bowler Metcalf has no effect on the direction of Sasol i.e., Sasol and Bowler Metcalf go up and down completely randomly.
Pair Corralation between Sasol and Bowler Metcalf
Assuming the 90 days trading horizon Sasol Ltd Bee is expected to under-perform the Bowler Metcalf. But the etf apears to be less risky and, when comparing its historical volatility, Sasol Ltd Bee is 1.09 times less risky than Bowler Metcalf. The etf trades about -0.01 of its potential returns per unit of risk. The Bowler Metcalf is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 91,265 in Bowler Metcalf on August 27, 2024 and sell it today you would earn a total of 45,635 from holding Bowler Metcalf or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sasol Ltd Bee vs. Bowler Metcalf
Performance |
| Timeline |
| Sasol Ltd Bee |
| Bowler Metcalf |
Sasol and Bowler Metcalf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sasol and Bowler Metcalf
The main advantage of trading using opposite Sasol and Bowler Metcalf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sasol position performs unexpectedly, Bowler Metcalf 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 Bowler Metcalf will offset losses from the drop in Bowler Metcalf's long position.| Sasol vs. Europa Metals | Sasol vs. British American Tobacco | Sasol vs. Kap Industrial Holdings | Sasol vs. Anglo American Platinum |
| Bowler Metcalf vs. Nampak | Bowler Metcalf vs. Sasol Ltd Bee | Bowler Metcalf vs. Growthpoint Properties | Bowler Metcalf 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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