Correlation Between Satrix MSCI and Sasol
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By analyzing existing cross correlation between Satrix MSCI World and Sasol Ltd Bee, you can compare the effects of market volatilities on Satrix MSCI 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 MSCI with a short position of Sasol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Satrix MSCI and Sasol.
Diversification Opportunities for Satrix MSCI and Sasol
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Satrix and Sasol is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Satrix MSCI World 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 MSCI 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 MSCI World 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 MSCI i.e., Satrix MSCI and Sasol go up and down completely randomly.
Pair Corralation between Satrix MSCI and Sasol
Assuming the 90 days trading horizon Satrix MSCI is expected to generate 177.55 times less return on investment than Sasol. But when comparing it to its historical volatility, Satrix MSCI World is 21.08 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 0.25 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 Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Satrix MSCI World vs. Sasol Ltd Bee
Performance |
| Timeline |
| Satrix MSCI World |
| Sasol Ltd Bee |
Satrix MSCI and Sasol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Satrix MSCI and Sasol
The main advantage of trading using opposite Satrix MSCI and Sasol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Satrix MSCI 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 MSCI vs. Sasol Ltd Bee | Satrix MSCI vs. Centaur Bci Balanced | Satrix MSCI vs. Sabvest Capital | Satrix MSCI 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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