Correlation Between Sasol and Dis Chem
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By analyzing existing cross correlation between Sasol Ltd Bee and Dis Chem Pharmacies, you can compare the effects of market volatilities on Sasol and Dis Chem 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 Dis Chem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sasol and Dis Chem.
Diversification Opportunities for Sasol and Dis Chem
Very good diversification
The 3 months correlation between Sasol and Dis is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Sasol Ltd Bee and Dis Chem Pharmacies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dis Chem Pharmacies 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 Dis Chem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dis Chem Pharmacies has no effect on the direction of Sasol i.e., Sasol and Dis Chem go up and down completely randomly.
Pair Corralation between Sasol and Dis Chem
Assuming the 90 days trading horizon Sasol Ltd Bee is expected to under-perform the Dis Chem. In addition to that, Sasol is 2.61 times more volatile than Dis Chem Pharmacies. It trades about -0.01 of its total potential returns per unit of risk. Dis Chem Pharmacies is currently generating about 0.04 per unit of volatility. If you would invest 297,747 in Dis Chem Pharmacies on August 30, 2024 and sell it today you would earn a total of 89,753 from holding Dis Chem Pharmacies or generate 30.14% 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. Dis Chem Pharmacies
Performance |
| Timeline |
| Sasol Ltd Bee |
| Dis Chem Pharmacies |
Sasol and Dis Chem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sasol and Dis Chem
The main advantage of trading using opposite Sasol and Dis Chem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sasol position performs unexpectedly, Dis Chem 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 Dis Chem will offset losses from the drop in Dis Chem's long position.| Sasol vs. CoreShares Preference Share | Sasol vs. CoreShares TotalWldStock ETF | Sasol vs. CoreShares SP 500 | Sasol vs. CoreShares Income AMETF |
| Dis Chem vs. Standard Bank Group | Dis Chem vs. City Lodge Hotels | Dis Chem vs. Life Healthcare | Dis Chem vs. Hosken Consolidated Investments |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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