To buy Naspers when we buy Prosus - The answer is

19. Mai 2023

There is a super strong correlation with Naspers and Prosus.

So yes, it would make sense to buy both. But with such a strong correlation one could just double on the investment on one of their trades to avoid extra costs?

That's just me thinking out loud.

Naspers and Prosus are closely correlated in price chart because of the relationship between the two companies.

Naspers is the parent company of Prosus and holds a significant stake in Prosus.

In fact, Naspers owns a majority of the voting rights in Prosus due to the dual-class share structure.

As a result, changes in the share price of Naspers often have a direct impact on the share price of Prosus.

This correlation occurs because investors and traders consider the value and performance of Naspers when assessing the value and performance of Prosus.

Since Naspers is the majority shareholder and has significant control over Prosus, any significant news, events, or market sentiment affecting Naspers can influence the perception and valuation of Prosus as well.

This correlation is further reinforced by the fact that both Naspers and Prosus have overlapping investments in prominent technology companies, such as Tencent.

It's important to note that while there is a strong correlation between Naspers and Prosus in terms of their share prices, there can still be slight differences due to factors such as market demand, liquidity, and investor sentiment.

Additionally, external market conditions and broader economic factors can also impact the share prices of both Naspers and Prosus, further reinforcing the correlation between the two.