Correlation Between Indexco Limited and Sasol
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By analyzing existing cross correlation between Indexco Limited and Sasol Ltd Bee, you can compare the effects of market volatilities on Indexco Limited and Sasol 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 Indexco Limited with a short position of Sasol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indexco Limited and Sasol.
Diversification Opportunities for Indexco Limited and Sasol
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Indexco and Sasol is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Indexco Limited and Sasol Ltd Bee in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sasol Ltd Bee and Indexco Limited 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 Indexco Limited are associated (or correlated) with Sasol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sasol Ltd Bee has no effect on the direction of Indexco Limited i.e., Indexco Limited and Sasol go up and down completely randomly.
Pair Corralation between Indexco Limited and Sasol
Assuming the 90 days trading horizon Indexco Limited is expected to generate 0.21 times more return on investment than Sasol. However, Indexco Limited is 4.7 times less risky than Sasol. It trades about 0.03 of its potential returns per unit of risk. Sasol Ltd Bee is currently generating about -0.01 per unit of risk. If you would invest 372,634 in Indexco Limited on August 30, 2024 and sell it today you would earn a total of 53,166 from holding Indexco Limited or generate 14.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Indexco Limited vs. Sasol Ltd Bee
Performance |
| Timeline |
| Indexco Limited |
| Sasol Ltd Bee |
Indexco Limited and Sasol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indexco Limited and Sasol
The main advantage of trading using opposite Indexco Limited and Sasol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indexco Limited position performs unexpectedly, Sasol 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 Sasol will offset losses from the drop in Sasol's long position.| Indexco Limited vs. FNB ETN on | Indexco Limited vs. Satrix MSCI World | Indexco Limited vs. GSETNC | Indexco Limited vs. Satrix Swix Top |
| Sasol vs. CoreShares Preference Share | Sasol vs. CoreShares TotalWldStock ETF | Sasol vs. CoreShares SP 500 | Sasol vs. CoreShares Income AMETF |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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