Correlation Between Examobile and LSI Software

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Can any of the company-specific risk be diversified away by investing in both Examobile and LSI Software 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 Examobile and LSI Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Examobile SA and LSI Software SA, you can compare the effects of market volatilities on Examobile and LSI Software 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 Examobile with a short position of LSI Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Examobile and LSI Software.

Diversification Opportunities for Examobile and LSI Software

ExamobileLSIDiversified AwayExamobileLSIDiversified Away100%
0.19
  Correlation Coefficient

Average diversification

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

Pair Corralation between Examobile and LSI Software

Assuming the 90 days trading horizon Examobile is expected to generate 2.86 times less return on investment than LSI Software. In addition to that, Examobile is 1.23 times more volatile than LSI Software SA. It trades about 0.02 of its total potential returns per unit of risk. LSI Software SA is currently generating about 0.08 per unit of volatility. If you would invest  1,500  in LSI Software SA on November 24, 2024 and sell it today you would earn a total of  160.00  from holding LSI Software SA or generate 10.67% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy50.85%
ValuesDaily Returns

Examobile SA  vs.  LSI Software SA

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -5051015202530
JavaScript chart by amCharts 3.21.15EXA LSI
       Timeline  
Examobile SA 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Examobile SA are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Examobile is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.
JavaScript chart by amCharts 3.21.15OctNovDecJanFebNovDecJanFeb33.544.5
LSI Software SA 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in LSI Software SA are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, LSI Software reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb14.51515.51616.517

Examobile and LSI Software Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-15.85-11.87-7.89-3.910.03.847.8811.9315.9720.01 0.010.020.030.040.050.06
JavaScript chart by amCharts 3.21.15EXA LSI
       Returns  

Pair Trading with Examobile and LSI Software

The main advantage of trading using opposite Examobile and LSI Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Examobile position performs unexpectedly, LSI Software 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 LSI Software will offset losses from the drop in LSI Software's long position.
The idea behind Examobile SA and LSI Software SA 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.

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