Correlation Between Sasol and JSE
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By analyzing existing cross correlation between Sasol Ltd Bee and JSE Limited, you can compare the effects of market volatilities on Sasol and JSE 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 JSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sasol and JSE.
Diversification Opportunities for Sasol and JSE
Modest diversification
The 3 months correlation between Sasol and JSE is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Sasol Ltd Bee and JSE Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JSE Limited 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 JSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JSE Limited has no effect on the direction of Sasol i.e., Sasol and JSE go up and down completely randomly.
Pair Corralation between Sasol and JSE
Assuming the 90 days trading horizon Sasol Ltd Bee is expected to under-perform the JSE. In addition to that, Sasol is 2.85 times more volatile than JSE Limited. It trades about -0.01 of its total potential returns per unit of risk. JSE Limited is currently generating about 0.04 per unit of volatility. If you would invest 948,130 in JSE Limited on August 30, 2024 and sell it today you would earn a total of 240,770 from holding JSE Limited or generate 25.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sasol Ltd Bee vs. JSE Limited
Performance |
| Timeline |
| Sasol Ltd Bee |
| JSE Limited |
Sasol and JSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sasol and JSE
The main advantage of trading using opposite Sasol and JSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sasol position performs unexpectedly, JSE 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 JSE will offset losses from the drop in JSE's long position.| Sasol vs. CoreShares Preference Share | Sasol vs. CoreShares TotalWldStock ETF | Sasol vs. CoreShares SP 500 | Sasol vs. CoreShares Income AMETF |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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