Correlation Between Sasol and RMB Holdings
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By analyzing existing cross correlation between Sasol Ltd Bee and RMB Holdings, you can compare the effects of market volatilities on Sasol and RMB Holdings 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 RMB Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sasol and RMB Holdings.
Diversification Opportunities for Sasol and RMB Holdings
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sasol and RMB is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Sasol Ltd Bee and RMB Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RMB Holdings 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 RMB Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RMB Holdings has no effect on the direction of Sasol i.e., Sasol and RMB Holdings go up and down completely randomly.
Pair Corralation between Sasol and RMB Holdings
If you would invest (100.00) in RMB Holdings on January 14, 2025 and sell it today you would earn a total of 100.00 from holding RMB Holdings or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Sasol Ltd Bee vs. RMB Holdings
Performance |
| Timeline |
| Sasol Ltd Bee |
| RMB Holdings |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Sasol and RMB Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sasol and RMB Holdings
The main advantage of trading using opposite Sasol and RMB Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sasol position performs unexpectedly, RMB Holdings 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 RMB Holdings will offset losses from the drop in RMB Holdings' long position.| Sasol vs. NewFunds Value Equity | Sasol vs. Indexco Limited | Sasol vs. 1nvest ICE Treasury | Sasol vs. Burstone Group Limited |
| RMB Holdings vs. Trematon Capital Investments | RMB Holdings vs. Astral Foods | RMB Holdings vs. Brimstone Investment | RMB Holdings vs. Europa Metals |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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