Correlation Between ATT and SASOL
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By analyzing existing cross correlation between ATT Inc and SASOL FING USA, you can compare the effects of market volatilities on ATT 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 ATT with a short position of SASOL. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and SASOL.
Diversification Opportunities for ATT and SASOL
Very good diversification
The 3 months correlation between ATT and SASOL is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and SASOL FING USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SASOL FING USA and ATT 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 ATT Inc 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 FING USA has no effect on the direction of ATT i.e., ATT and SASOL go up and down completely randomly.
Pair Corralation between ATT and SASOL
Taking into account the 90-day investment horizon ATT Inc is expected to generate 0.57 times more return on investment than SASOL. However, ATT Inc is 1.75 times less risky than SASOL. It trades about 0.14 of its potential returns per unit of risk. SASOL FING USA is currently generating about -0.1 per unit of risk. If you would invest 2,254 in ATT Inc on September 1, 2024 and sell it today you would earn a total of 62.00 from holding ATT Inc or generate 2.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATT Inc vs. SASOL FING USA
Performance |
| Timeline |
| ATT Inc |
| SASOL FING USA |
ATT and SASOL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and SASOL
The main advantage of trading using opposite ATT and SASOL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT 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.The idea behind ATT Inc and SASOL FING USA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| SASOL vs. Townsquare Media | SASOL vs. Magnite | SASOL vs. Western Sierra Mining | SASOL vs. Zijin Mining Group |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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