Correlation Between Sasol and Jubilee Platinum
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By analyzing existing cross correlation between Sasol Ltd Bee and Jubilee Platinum, you can compare the effects of market volatilities on Sasol and Jubilee Platinum 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 Jubilee Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sasol and Jubilee Platinum.
Diversification Opportunities for Sasol and Jubilee Platinum
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sasol and Jubilee is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Sasol Ltd Bee and Jubilee Platinum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jubilee Platinum 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 Jubilee Platinum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jubilee Platinum has no effect on the direction of Sasol i.e., Sasol and Jubilee Platinum go up and down completely randomly.
Pair Corralation between Sasol and Jubilee Platinum
Assuming the 90 days trading horizon Sasol Ltd Bee is expected to under-perform the Jubilee Platinum. But the etf apears to be less risky and, when comparing its historical volatility, Sasol Ltd Bee is 1.37 times less risky than Jubilee Platinum. The etf trades about -0.09 of its potential returns per unit of risk. The Jubilee Platinum is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 11,400 in Jubilee Platinum on September 14, 2024 and sell it today you would lose (900.00) from holding Jubilee Platinum or give up 7.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Sasol Ltd Bee vs. Jubilee Platinum
Performance |
| Timeline |
| Sasol Ltd Bee |
| Jubilee Platinum |
Sasol and Jubilee Platinum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sasol and Jubilee Platinum
The main advantage of trading using opposite Sasol and Jubilee Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sasol position performs unexpectedly, Jubilee Platinum 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 Jubilee Platinum will offset losses from the drop in Jubilee Platinum's long position.The idea behind Sasol Ltd Bee and Jubilee Platinum 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.| Jubilee Platinum vs. African Rainbow Minerals | Jubilee Platinum vs. Europa Metals | Jubilee Platinum vs. Sasol Ltd Bee | Jubilee Platinum vs. Centaur Bci Balanced |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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