Correlation Between Western Asset and Sasol
Can any of the company-specific risk be diversified away by investing in both Western Asset 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 Western Asset and Sasol into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Asset Investment and Sasol, you can compare the effects of market volatilities on Western Asset 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 Western Asset with a short position of Sasol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Sasol.
Diversification Opportunities for Western Asset and Sasol
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Western and Sasol is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Investment and Sasol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sasol and Western Asset 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 Western Asset Investment 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 Western Asset i.e., Western Asset and Sasol go up and down completely randomly.
Pair Corralation between Western Asset and Sasol
Considering the 90-day investment horizon Western Asset Investment is expected to generate 0.12 times more return on investment than Sasol. However, Western Asset Investment is 8.46 times less risky than Sasol. It trades about 0.0 of its potential returns per unit of risk. Sasol is currently generating about 0.0 per unit of risk. If you would invest 1,643 in Western Asset Investment on August 27, 2025 and sell it today you would earn a total of 0.00 from holding Western Asset Investment or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Asset Investment vs. Sasol
Performance |
| Timeline |
| Western Asset Investment |
| Sasol |
Western Asset and Sasol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Sasol
The main advantage of trading using opposite Western Asset and Sasol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset 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.| Western Asset vs. Merck Company | Western Asset vs. Alcoa Corp | Western Asset vs. Neuberger Berman Small | Western Asset vs. Canadian General Investments |
| Sasol vs. Alternative Investment | Sasol vs. Western Asset Investment | Sasol vs. Silk Road Entertainment | Sasol vs. Shenzhen Investment Holdings |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |