Correlation Between Allot Communications and Lesaka Technologies
Can any of the company-specific risk be diversified away by investing in both Allot Communications and Lesaka Technologies 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 Allot Communications and Lesaka Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allot Communications and Lesaka Technologies, you can compare the effects of market volatilities on Allot Communications and Lesaka Technologies 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 Allot Communications with a short position of Lesaka Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allot Communications and Lesaka Technologies.
Diversification Opportunities for Allot Communications and Lesaka Technologies
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Allot and Lesaka is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Allot Communications and Lesaka Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lesaka Technologies and Allot Communications 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 Allot Communications are associated (or correlated) with Lesaka Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lesaka Technologies has no effect on the direction of Allot Communications i.e., Allot Communications and Lesaka Technologies go up and down completely randomly.
Pair Corralation between Allot Communications and Lesaka Technologies
Given the investment horizon of 90 days Allot Communications is expected to generate 2.51 times more return on investment than Lesaka Technologies. However, Allot Communications is 2.51 times more volatile than Lesaka Technologies. It trades about 0.15 of its potential returns per unit of risk. Lesaka Technologies is currently generating about -0.15 per unit of risk. If you would invest 457.00 in Allot Communications on September 24, 2024 and sell it today you would earn a total of 44.00 from holding Allot Communications or generate 9.63% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Allot Communications vs. Lesaka Technologies
Performance |
Timeline |
Allot Communications |
Lesaka Technologies |
Allot Communications and Lesaka Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Allot Communications and Lesaka Technologies
The main advantage of trading using opposite Allot Communications and Lesaka Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allot Communications position performs unexpectedly, Lesaka Technologies 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 Lesaka Technologies will offset losses from the drop in Lesaka Technologies' long position.Allot Communications vs. Lesaka Technologies | Allot Communications vs. Priority Technology Holdings | Allot Communications vs. CSG Systems International | Allot Communications vs. OneSpan |
Lesaka Technologies vs. NetScout Systems | Lesaka Technologies vs. Consensus Cloud Solutions | Lesaka Technologies vs. CSG Systems International | Lesaka Technologies vs. Remitly Global |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |