Correlation Between Satrix Swix and Satrix 40
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By analyzing existing cross correlation between Satrix Swix Top and Satrix 40 ETF, you can compare the effects of market volatilities on Satrix Swix and Satrix 40 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 Satrix 40. Check out your portfolio center. Please also check ongoing floating volatility patterns of Satrix Swix and Satrix 40.
Diversification Opportunities for Satrix Swix and Satrix 40
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Satrix and Satrix is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Satrix Swix Top and Satrix 40 ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Satrix 40 ETF 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 Satrix 40. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Satrix 40 ETF has no effect on the direction of Satrix Swix i.e., Satrix Swix and Satrix 40 go up and down completely randomly.
Pair Corralation between Satrix Swix and Satrix 40
Assuming the 90 days trading horizon Satrix Swix is expected to generate 1.2 times less return on investment than Satrix 40. In addition to that, Satrix Swix is 1.07 times more volatile than Satrix 40 ETF. It trades about 0.08 of its total potential returns per unit of risk. Satrix 40 ETF is currently generating about 0.1 per unit of volatility. If you would invest 702,645 in Satrix 40 ETF on September 3, 2024 and sell it today you would earn a total of 75,055 from holding Satrix 40 ETF or generate 10.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Satrix Swix Top vs. Satrix 40 ETF
Performance |
| Timeline |
| Satrix Swix Top |
| Satrix 40 ETF |
Satrix Swix and Satrix 40 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Satrix Swix and Satrix 40
The main advantage of trading using opposite Satrix Swix and Satrix 40 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Satrix Swix position performs unexpectedly, Satrix 40 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 Satrix 40 will offset losses from the drop in Satrix 40's long position.| Satrix Swix vs. Libstar Holdings | Satrix Swix vs. City Lodge Hotels | Satrix Swix vs. African Media Entertainment | Satrix Swix vs. Europa Metals |
| Satrix 40 vs. Libstar Holdings | Satrix 40 vs. City Lodge Hotels | Satrix 40 vs. African Media Entertainment | Satrix 40 vs. Europa Metals |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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