Correlation Between SASOL and Summit Materials
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By analyzing existing cross correlation between SASOL FING USA and Summit Materials, you can compare the effects of market volatilities on SASOL and Summit Materials 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 SASOL with a short position of Summit Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of SASOL and Summit Materials.
Diversification Opportunities for SASOL and Summit Materials
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SASOL and Summit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SASOL FING USA and Summit Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Materials and SASOL 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 SASOL FING USA are associated (or correlated) with Summit Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Materials has no effect on the direction of SASOL i.e., SASOL and Summit Materials go up and down completely randomly.
Pair Corralation between SASOL and Summit Materials
If you would invest 5,204 in Summit Materials on November 9, 2024 and sell it today you would earn a total of 45.00 from holding Summit Materials or generate 0.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SASOL FING USA vs. Summit Materials
Performance |
| Timeline |
| SASOL FING USA |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Summit Materials |
SASOL and Summit Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SASOL and Summit Materials
The main advantage of trading using opposite SASOL and Summit Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SASOL position performs unexpectedly, Summit Materials 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 Summit Materials will offset losses from the drop in Summit Materials' long position.The idea behind SASOL FING USA and Summit Materials 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.| Summit Materials vs. Martin Marietta Materials | Summit Materials vs. Vulcan Materials | Summit Materials vs. United States Lime | Summit Materials vs. James Hardie Industries |
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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