Correlation Between Sasol and Investec Limited
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By analyzing existing cross correlation between Sasol Ltd Bee and Investec Limited NON, you can compare the effects of market volatilities on Sasol and Investec Limited 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 Investec Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sasol and Investec Limited.
Diversification Opportunities for Sasol and Investec Limited
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sasol and Investec is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Sasol Ltd Bee and Investec Limited NON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investec Limited NON 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 Investec Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investec Limited NON has no effect on the direction of Sasol i.e., Sasol and Investec Limited go up and down completely randomly.
Pair Corralation between Sasol and Investec Limited
Assuming the 90 days trading horizon Sasol Ltd Bee is expected to under-perform the Investec Limited. In addition to that, Sasol is 4.15 times more volatile than Investec Limited NON. It trades about -0.36 of its total potential returns per unit of risk. Investec Limited NON is currently generating about -0.09 per unit of volatility. If you would invest 948,000 in Investec Limited NON on August 28, 2024 and sell it today you would lose (13,000) from holding Investec Limited NON or give up 1.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sasol Ltd Bee vs. Investec Limited NON
Performance |
| Timeline |
| Sasol Ltd Bee |
| Investec Limited NON |
Sasol and Investec Limited Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sasol and Investec Limited
The main advantage of trading using opposite Sasol and Investec Limited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sasol position performs unexpectedly, Investec Limited 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 Investec Limited will offset losses from the drop in Investec Limited's long position.| Sasol vs. Europa Metals | Sasol vs. British American Tobacco | Sasol vs. Kap Industrial Holdings | Sasol vs. Anglo American Platinum |
| Investec Limited vs. Sasol Ltd Bee | Investec Limited vs. Centaur Bci Balanced | Investec Limited vs. Sabvest Capital | Investec Limited vs. Growthpoint Properties |
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 CEOs Directory module to screen CEOs from public companies around the world.
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