Correlation Between Sasol and Lesaka Technologies
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By analyzing existing cross correlation between Sasol Ltd Bee and Lesaka Technologies, you can compare the effects of market volatilities on Sasol and Lesaka Technologies 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 Lesaka Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sasol and Lesaka Technologies.
Diversification Opportunities for Sasol and Lesaka Technologies
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sasol and Lesaka is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Sasol Ltd Bee and Lesaka Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lesaka Technologies 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 Lesaka Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lesaka Technologies has no effect on the direction of Sasol i.e., Sasol and Lesaka Technologies go up and down completely randomly.
Pair Corralation between Sasol and Lesaka Technologies
Assuming the 90 days trading horizon Sasol Ltd Bee is expected to under-perform the Lesaka Technologies. But the etf apears to be less risky and, when comparing its historical volatility, Sasol Ltd Bee is 1.01 times less risky than Lesaka Technologies. The etf trades about -0.32 of its potential returns per unit of risk. The Lesaka Technologies is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 911,600 in Lesaka Technologies on September 1, 2024 and sell it today you would earn a total of 48,300 from holding Lesaka Technologies or generate 5.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sasol Ltd Bee vs. Lesaka Technologies
Performance |
| Timeline |
| Sasol Ltd Bee |
| Lesaka Technologies |
Sasol and Lesaka Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sasol and Lesaka Technologies
The main advantage of trading using opposite Sasol and Lesaka Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sasol position performs unexpectedly, Lesaka Technologies 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 Lesaka Technologies will offset losses from the drop in Lesaka Technologies' long position.| Sasol vs. Europa Metals | Sasol vs. JSE Limited | Sasol vs. British American Tobacco | Sasol vs. Kap Industrial Holdings |
| Lesaka Technologies vs. Bytes Technology | Lesaka Technologies vs. Sasol Ltd Bee | Lesaka Technologies vs. Growthpoint Properties | Lesaka Technologies 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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