Correlation Between Sasol and Endocan Corp
Can any of the company-specific risk be diversified away by investing in both Sasol and Endocan Corp at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Sasol and Endocan Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sasol and Endocan Corp, you can compare the effects of market volatilities on Sasol and Endocan Corp 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 Endocan Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sasol and Endocan Corp.
Diversification Opportunities for Sasol and Endocan Corp
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sasol and Endocan is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Sasol and Endocan Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endocan Corp 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 are associated (or correlated) with Endocan Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endocan Corp has no effect on the direction of Sasol i.e., Sasol and Endocan Corp go up and down completely randomly.
Pair Corralation between Sasol and Endocan Corp
If you would invest 0.01 in Endocan Corp on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Endocan Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sasol vs. Endocan Corp
Performance |
| Timeline |
| Sasol |
| Endocan Corp |
Sasol and Endocan Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sasol and Endocan Corp
The main advantage of trading using opposite Sasol and Endocan Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sasol position performs unexpectedly, Endocan Corp 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 Endocan Corp will offset losses from the drop in Endocan Corp's long position.| Sasol vs. Olin Corporation | Sasol vs. Cabot | Sasol vs. Kronos Worldwide | Sasol vs. LyondellBasell Industries NV |
| Endocan Corp vs. First Graphene | Endocan Corp vs. HUMANA INC | Endocan Corp vs. Aquagold International | Endocan Corp vs. Barloworld Ltd ADR |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |