Correlation Between Lesaka Technologies and Cellebrite

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

By analyzing existing cross correlation between Lesaka Technologies and Cellebrite DI, you can compare the effects of market volatilities on Lesaka Technologies and Cellebrite 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 Lesaka Technologies with a short position of Cellebrite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lesaka Technologies and Cellebrite.

Diversification Opportunities for Lesaka Technologies and Cellebrite

0.48

Correlation Coefficient

Lesaka Technologies  Cellebrite

Very weak diversification

The 3 months correlation between Lesaka and Cellebrite is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Lesaka Technologies and Cellebrite DI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cellebrite DI and Lesaka Technologies 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 Lesaka Technologies are associated (or correlated) with Cellebrite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cellebrite DI has no effect on the direction of Lesaka Technologies i.e., Lesaka Technologies and Cellebrite go up and down completely randomly.

Pair Corralation between Lesaka Technologies and Cellebrite

Given the investment horizon of 90 days Lesaka Technologies is expected to generate 0.78 times more return on investment than Cellebrite. However, Lesaka Technologies is 1.28 times less risky than Cellebrite. It trades about -0.03 of its potential returns per unit of risk. Cellebrite DI is currently generating about -0.05 per unit of risk. If you would invest  539.00  in Lesaka Technologies on December 30, 2024 and sell it today you would lose (32.00) from holding Lesaka Technologies or give up 5.94% of portfolio value over 90 days.

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

Lesaka Technologies  vs.  Cellebrite DI

Lesaka Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lesaka Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Lesaka Technologies is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Cellebrite DI

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Lesaka Technologies and Cellebrite

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

The idea behind Lesaka Technologies and Cellebrite DI 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.