Correlation Between Sasol and Fortinet

Can any of the company-specific risk be diversified away by investing in both Sasol and Fortinet 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 Sasol and Fortinet into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sasol and Fortinet, you can compare the effects of market volatilities on Sasol and Fortinet 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 Fortinet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sasol and Fortinet.

Diversification Opportunities for Sasol and Fortinet

-0.67

Correlation Coefficient

Sasol  Fortinet

Excellent diversification

The 3 months correlation between Sasol and Fortinet is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Sasol and Fortinet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortinet 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 are associated (or correlated) with Fortinet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortinet has no effect on the direction of Sasol i.e., Sasol and Fortinet go up and down completely randomly.

Pair Corralation between Sasol and Fortinet

Considering the 90-day investment horizon Sasol is expected to generate 1.01 times more return on investment than Fortinet. However, Sasol is 1.01 times more volatile than Fortinet. It trades about 0.1 of its potential returns per unit of risk. Fortinet is currently generating about -0.09 per unit of risk. If you would invest  496.00  in Sasol on July 16, 2025 and sell it today you would earn a total of  94.00  from holding Sasol or generate 18.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Sasol  vs.  Fortinet

Sasol

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Sasol are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady basic indicators, Sasol disclosed solid returns over the last few months and may actually be approaching a breakup point.

Fortinet

Risk-Adjusted Performance

Weakest

Over the last 90 days Fortinet has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in November 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Sasol and Fortinet

The main advantage of trading using opposite Sasol and Fortinet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sasol position performs unexpectedly, Fortinet 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 Fortinet will offset losses from the drop in Fortinet's long position.

The idea behind Sasol and Fortinet 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.

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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..