Correlation Between Satrix Swix and Sasol
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By analyzing existing cross correlation between Satrix Swix Top and Sasol Ltd Bee, you can compare the effects of market volatilities on Satrix Swix 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 Satrix Swix with a short position of Sasol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Satrix Swix and Sasol.
Diversification Opportunities for Satrix Swix and Sasol
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Satrix and Sasol is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Satrix Swix Top 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 Satrix Swix 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 Satrix Swix Top 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 Satrix Swix i.e., Satrix Swix and Sasol go up and down completely randomly.
Pair Corralation between Satrix Swix and Sasol
Assuming the 90 days trading horizon Satrix Swix Top is expected to under-perform the Sasol. But the etf apears to be less risky and, when comparing its historical volatility, Satrix Swix Top is 16.52 times less risky than Sasol. The etf trades about -0.04 of its potential returns per unit of risk. The Sasol Ltd Bee is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 420,000 in Sasol Ltd Bee on October 28, 2024 and sell it today you would earn a total of 290,000 from holding Sasol Ltd Bee or generate 69.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Satrix Swix Top vs. Sasol Ltd Bee
Performance |
| Timeline |
| Satrix Swix Top |
| Sasol Ltd Bee |
Satrix Swix and Sasol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Satrix Swix and Sasol
The main advantage of trading using opposite Satrix Swix and Sasol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Satrix Swix 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.| Satrix Swix vs. Satrix MSCI World | Satrix Swix vs. Satrix 40 ETF | Satrix Swix vs. Satrix MSCI EM | Satrix Swix vs. Satrix Resi ETF |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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