Correlation Between Centerra Gold and Sasol
Can any of the company-specific risk be diversified away by investing in both Centerra Gold and Sasol at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Centerra Gold and Sasol into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Centerra Gold and Sasol, you can compare the effects of market volatilities on Centerra Gold 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 Centerra Gold with a short position of Sasol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centerra Gold and Sasol.
Diversification Opportunities for Centerra Gold and Sasol
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Centerra and Sasol is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Centerra Gold and Sasol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sasol and Centerra Gold 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 Centerra Gold 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 has no effect on the direction of Centerra Gold i.e., Centerra Gold and Sasol go up and down completely randomly.
Pair Corralation between Centerra Gold and Sasol
Given the investment horizon of 90 days Centerra Gold is expected to generate 0.82 times more return on investment than Sasol. However, Centerra Gold is 1.22 times less risky than Sasol. It trades about 0.3 of its potential returns per unit of risk. Sasol is currently generating about 0.09 per unit of risk. If you would invest 721.00 in Centerra Gold on August 16, 2025 and sell it today you would earn a total of 494.00 from holding Centerra Gold or generate 68.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Centerra Gold vs. Sasol
Performance |
| Timeline |
| Centerra Gold |
| Sasol |
Centerra Gold and Sasol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centerra Gold and Sasol
The main advantage of trading using opposite Centerra Gold and Sasol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centerra Gold 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.| Centerra Gold vs. Seabridge Gold | Centerra Gold vs. DRDGOLD Limited ADR | Centerra Gold vs. Boise Cascad Llc | Centerra Gold vs. Fortuna Silver Mines |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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