Correlation Between Sasol and Naspers
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By analyzing existing cross correlation between Sasol Ltd Bee and Naspers Limited, you can compare the effects of market volatilities on Sasol and Naspers 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 Naspers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sasol and Naspers.
Diversification Opportunities for Sasol and Naspers
Very good diversification
The 3 months correlation between Sasol and Naspers is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Sasol Ltd Bee and Naspers Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Naspers 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 Naspers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Naspers Limited has no effect on the direction of Sasol i.e., Sasol and Naspers go up and down completely randomly.
Pair Corralation between Sasol and Naspers
Assuming the 90 days trading horizon Sasol Ltd Bee is expected to under-perform the Naspers. In addition to that, Sasol is 1.78 times more volatile than Naspers Limited. It trades about -0.02 of its total potential returns per unit of risk. Naspers Limited is currently generating about 0.05 per unit of volatility. If you would invest 31,149,300 in Naspers Limited on September 4, 2024 and sell it today you would earn a total of 11,550,600 from holding Naspers Limited or generate 37.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Sasol Ltd Bee vs. Naspers Limited
Performance |
| Timeline |
| Sasol Ltd Bee |
| Naspers Limited |
Sasol and Naspers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sasol and Naspers
The main advantage of trading using opposite Sasol and Naspers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sasol position performs unexpectedly, Naspers 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 Naspers will offset losses from the drop in Naspers' long position.| Sasol vs. Libstar Holdings | Sasol vs. City Lodge Hotels | Sasol vs. African Media Entertainment | Sasol vs. Europa Metals |
| Naspers vs. Prosus NV | Naspers vs. Sasol Ltd Bee | Naspers vs. Centaur Bci Balanced | Naspers vs. Sabvest Capital |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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