Correlation Between Sasol and Sab Zenzele
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By analyzing existing cross correlation between Sasol Ltd Bee and Sab Zenzele Kabili, you can compare the effects of market volatilities on Sasol and Sab Zenzele 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 Sab Zenzele. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sasol and Sab Zenzele.
Diversification Opportunities for Sasol and Sab Zenzele
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sasol and Sab is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Sasol Ltd Bee and Sab Zenzele Kabili in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sab Zenzele Kabili 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 Sab Zenzele. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sab Zenzele Kabili has no effect on the direction of Sasol i.e., Sasol and Sab Zenzele go up and down completely randomly.
Pair Corralation between Sasol and Sab Zenzele
Assuming the 90 days trading horizon Sasol Ltd Bee is expected to under-perform the Sab Zenzele. In addition to that, Sasol is 1.2 times more volatile than Sab Zenzele Kabili. It trades about -0.09 of its total potential returns per unit of risk. Sab Zenzele Kabili is currently generating about -0.01 per unit of volatility. If you would invest 375,500 in Sab Zenzele Kabili on September 2, 2024 and sell it today you would lose (15,500) from holding Sab Zenzele Kabili or give up 4.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Sasol Ltd Bee vs. Sab Zenzele Kabili
Performance |
| Timeline |
| Sasol Ltd Bee |
| Sab Zenzele Kabili |
Sasol and Sab Zenzele Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sasol and Sab Zenzele
The main advantage of trading using opposite Sasol and Sab Zenzele positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sasol position performs unexpectedly, Sab Zenzele 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 Sab Zenzele will offset losses from the drop in Sab Zenzele's long position.The idea behind Sasol Ltd Bee and Sab Zenzele Kabili pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Sab Zenzele vs. Sasol Ltd Bee | Sab Zenzele vs. Centaur Bci Balanced | Sab Zenzele vs. Sabvest Capital | Sab Zenzele vs. Growthpoint Properties |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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