Correlation Between Sasol and EMedia Holdings
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By analyzing existing cross correlation between Sasol Ltd Bee and eMedia Holdings Limited, you can compare the effects of market volatilities on Sasol and EMedia Holdings 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 EMedia Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sasol and EMedia Holdings.
Diversification Opportunities for Sasol and EMedia Holdings
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sasol and EMedia is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Sasol Ltd Bee and eMedia Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eMedia Holdings 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 EMedia Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of eMedia Holdings has no effect on the direction of Sasol i.e., Sasol and EMedia Holdings go up and down completely randomly.
Pair Corralation between Sasol and EMedia Holdings
Assuming the 90 days trading horizon Sasol Ltd Bee is expected to under-perform the EMedia Holdings. In addition to that, Sasol is 1.61 times more volatile than eMedia Holdings Limited. It trades about -0.32 of its total potential returns per unit of risk. eMedia Holdings Limited is currently generating about -0.04 per unit of volatility. If you would invest 33,600 in eMedia Holdings Limited on September 1, 2024 and sell it today you would lose (600.00) from holding eMedia Holdings Limited or give up 1.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sasol Ltd Bee vs. eMedia Holdings Limited
Performance |
| Timeline |
| Sasol Ltd Bee |
| eMedia Holdings |
Sasol and EMedia Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sasol and EMedia Holdings
The main advantage of trading using opposite Sasol and EMedia Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sasol position performs unexpectedly, EMedia Holdings 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 EMedia Holdings will offset losses from the drop in EMedia Holdings' long position.| Sasol vs. Europa Metals | Sasol vs. JSE Limited | Sasol vs. British American Tobacco | Sasol vs. Kap Industrial Holdings |
| EMedia Holdings vs. MultiChoice Group | EMedia Holdings vs. Sasol Ltd Bee | EMedia Holdings vs. Growthpoint Properties | EMedia Holdings 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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