Correlation Between Sasol and Bid
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sasol Ltd Bee and Bid Corporation, you can compare the effects of market volatilities on Sasol and Bid 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 Bid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sasol and Bid.
Diversification Opportunities for Sasol and Bid
Very good diversification
The 3 months correlation between Sasol and Bid is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Sasol Ltd Bee and Bid Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bid Corporation 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 Bid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bid Corporation has no effect on the direction of Sasol i.e., Sasol and Bid go up and down completely randomly.
Pair Corralation between Sasol and Bid
Assuming the 90 days trading horizon Sasol Ltd Bee is expected to under-perform the Bid. In addition to that, Sasol is 1.82 times more volatile than Bid Corporation. It trades about -0.1 of its total potential returns per unit of risk. Bid Corporation is currently generating about 0.02 per unit of volatility. If you would invest 4,301,250 in Bid Corporation on September 3, 2024 and sell it today you would earn a total of 110,850 from holding Bid Corporation or generate 2.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.32% |
| Values | Daily Returns |
Sasol Ltd Bee vs. Bid Corp.
Performance |
| Timeline |
| Sasol Ltd Bee |
| Bid Corporation |
Sasol and Bid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sasol and Bid
The main advantage of trading using opposite Sasol and Bid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sasol position performs unexpectedly, Bid 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 Bid will offset losses from the drop in Bid's long position.The idea behind Sasol Ltd Bee and Bid Corporation 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.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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |