Correlation Between Sasol and Trematon Capital
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By analyzing existing cross correlation between Sasol Ltd Bee and Trematon Capital Investments, you can compare the effects of market volatilities on Sasol and Trematon Capital 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 Trematon Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sasol and Trematon Capital.
Diversification Opportunities for Sasol and Trematon Capital
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sasol and Trematon is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Sasol Ltd Bee and Trematon Capital Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trematon Capital Inv 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 Trematon Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trematon Capital Inv has no effect on the direction of Sasol i.e., Sasol and Trematon Capital go up and down completely randomly.
Pair Corralation between Sasol and Trematon Capital
Assuming the 90 days trading horizon Sasol Ltd Bee is expected to under-perform the Trematon Capital. But the etf apears to be less risky and, when comparing its historical volatility, Sasol Ltd Bee is 1.03 times less risky than Trematon Capital. The etf trades about -0.01 of its potential returns per unit of risk. The Trematon Capital Investments is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 35,400 in Trematon Capital Investments on September 4, 2024 and sell it today you would lose (13,400) from holding Trematon Capital Investments or give up 37.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sasol Ltd Bee vs. Trematon Capital Investments
Performance |
| Timeline |
| Sasol Ltd Bee |
| Trematon Capital Inv |
Sasol and Trematon Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sasol and Trematon Capital
The main advantage of trading using opposite Sasol and Trematon Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sasol position performs unexpectedly, Trematon Capital 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 Trematon Capital will offset losses from the drop in Trematon Capital's long position.| Sasol vs. Libstar Holdings | Sasol vs. City Lodge Hotels | Sasol vs. African Media Entertainment | Sasol vs. Europa Metals |
| Trematon Capital vs. Lighthouse Capital | Trematon Capital vs. Sasol Ltd Bee | Trematon Capital vs. Centaur Bci Balanced | Trematon Capital 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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