Correlation Between Sab Zenzele and Sasol
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By analyzing existing cross correlation between Sab Zenzele Kabili and Sasol Ltd Bee, you can compare the effects of market volatilities on Sab Zenzele 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 Sab Zenzele with a short position of Sasol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sab Zenzele and Sasol.
Diversification Opportunities for Sab Zenzele and Sasol
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sab and Sasol is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Sab Zenzele Kabili 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 Sab Zenzele 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 Sab Zenzele Kabili 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 Sab Zenzele i.e., Sab Zenzele and Sasol go up and down completely randomly.
Pair Corralation between Sab Zenzele and Sasol
Assuming the 90 days trading horizon Sab Zenzele Kabili is expected to generate 1.38 times more return on investment than Sasol. However, Sab Zenzele is 1.38 times more volatile than Sasol Ltd Bee. It trades about 0.02 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 414,852 in Sab Zenzele Kabili on September 3, 2024 and sell it today you would lose (54,852) from holding Sab Zenzele Kabili or give up 13.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Sab Zenzele Kabili vs. Sasol Ltd Bee
Performance |
| Timeline |
| Sab Zenzele Kabili |
| Sasol Ltd Bee |
Sab Zenzele and Sasol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sab Zenzele and Sasol
The main advantage of trading using opposite Sab Zenzele and Sasol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sab Zenzele 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.| Sab Zenzele vs. ABSA Bank Limited | Sab Zenzele vs. Bytes Technology | Sab Zenzele vs. Zeder Investments | Sab Zenzele vs. Astral Foods |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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