Correlation Between Sasol and MC Mining
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By analyzing existing cross correlation between Sasol Ltd Bee and MC Mining, you can compare the effects of market volatilities on Sasol and MC Mining 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 MC Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sasol and MC Mining.
Diversification Opportunities for Sasol and MC Mining
Very weak diversification
The 3 months correlation between Sasol and MCZ is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Sasol Ltd Bee and MC Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MC Mining 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 MC Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MC Mining has no effect on the direction of Sasol i.e., Sasol and MC Mining go up and down completely randomly.
Pair Corralation between Sasol and MC Mining
Assuming the 90 days trading horizon Sasol Ltd Bee is expected to under-perform the MC Mining. But the etf apears to be less risky and, when comparing its historical volatility, Sasol Ltd Bee is 1.33 times less risky than MC Mining. The etf trades about -0.02 of its potential returns per unit of risk. The MC Mining is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 19,400 in MC Mining on September 4, 2024 and sell it today you would lose (4,900) from holding MC Mining or give up 25.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Sasol Ltd Bee vs. MC Mining
Performance |
| Timeline |
| Sasol Ltd Bee |
| MC Mining |
Sasol and MC Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sasol and MC Mining
The main advantage of trading using opposite Sasol and MC Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sasol position performs unexpectedly, MC Mining 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 MC Mining will offset losses from the drop in MC Mining's long position.| Sasol vs. Libstar Holdings | Sasol vs. City Lodge Hotels | Sasol vs. African Media Entertainment | Sasol vs. Europa Metals |
| MC Mining vs. Sasol Ltd Bee | MC Mining vs. Centaur Bci Balanced | MC Mining vs. Growthpoint Properties | MC Mining vs. Coronation Global Equity |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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