Correlation Between Sadot and ESGL Holdings

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

By analyzing existing cross correlation between Sadot Group and ESGL Holdings Limited, you can compare the effects of market volatilities on Sadot and ESGL Holdings 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 Sadot with a short position of ESGL Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sadot and ESGL Holdings.

Diversification Opportunities for Sadot and ESGL Holdings

0.19

Correlation Coefficient

Sadot  ESGL Holdings

Average diversification

The 3 months correlation between Sadot and ESGL is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Sadot Group and ESGL Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ESGL Holdings Limited and Sadot 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 Sadot Group are associated (or correlated) with ESGL Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ESGL Holdings Limited has no effect on the direction of Sadot i.e., Sadot and ESGL Holdings go up and down completely randomly.

Pair Corralation between Sadot and ESGL Holdings

Given the investment horizon of 90 days Sadot Group is expected to under-perform the ESGL Holdings. In addition to that, Sadot is 1.74 times more volatile than ESGL Holdings Limited. It trades about -0.02 of its total potential returns per unit of risk. ESGL Holdings Limited is currently generating about 0.11 per unit of volatility. If you would invest  215.00  in ESGL Holdings Limited on May 17, 2025 and sell it today you would earn a total of  60.00  from holding ESGL Holdings Limited or generate 27.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Sadot Group  vs.  ESGL Holdings Limited

Sadot Group

Risk-Adjusted Performance

Weakest

Over the last 90 days Sadot Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

ESGL Holdings Limited

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in ESGL Holdings Limited are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent technical and fundamental indicators, ESGL Holdings disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sadot and ESGL Holdings

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

The idea behind Sadot Group and ESGL Holdings Limited 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.