Correlation Between Sasol and Deneb Investments
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By analyzing existing cross correlation between Sasol Ltd Bee and Deneb Investments, you can compare the effects of market volatilities on Sasol and Deneb Investments 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 Deneb Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sasol and Deneb Investments.
Diversification Opportunities for Sasol and Deneb Investments
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sasol and Deneb is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Sasol Ltd Bee and Deneb Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deneb Investments 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 Deneb Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deneb Investments has no effect on the direction of Sasol i.e., Sasol and Deneb Investments go up and down completely randomly.
Pair Corralation between Sasol and Deneb Investments
Assuming the 90 days trading horizon Sasol Ltd Bee is expected to under-perform the Deneb Investments. In addition to that, Sasol is 5.0 times more volatile than Deneb Investments. It trades about -0.36 of its total potential returns per unit of risk. Deneb Investments is currently generating about 0.4 per unit of volatility. If you would invest 24,600 in Deneb Investments on August 28, 2024 and sell it today you would earn a total of 1,300 from holding Deneb Investments or generate 5.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sasol Ltd Bee vs. Deneb Investments
Performance |
| Timeline |
| Sasol Ltd Bee |
| Deneb Investments |
Sasol and Deneb Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sasol and Deneb Investments
The main advantage of trading using opposite Sasol and Deneb Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sasol position performs unexpectedly, Deneb Investments 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 Deneb Investments will offset losses from the drop in Deneb Investments' long position.| Sasol vs. Europa Metals | Sasol vs. British American Tobacco | Sasol vs. Kap Industrial Holdings | Sasol vs. Anglo American Platinum |
| Deneb Investments vs. Blue Label Telecoms | Deneb Investments vs. CA Sales Holdings | Deneb Investments vs. Allied Electronics | Deneb Investments vs. RCL Foods |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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