Correlation Between Lesaka Technologies and DigiAsia Corp
Can any of the company-specific risk be diversified away by investing in both Lesaka Technologies and DigiAsia Corp 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 DigiAsia Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lesaka Technologies and DigiAsia Corp, you can compare the effects of market volatilities on Lesaka Technologies and DigiAsia Corp 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 DigiAsia Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lesaka Technologies and DigiAsia Corp.
Diversification Opportunities for Lesaka Technologies and DigiAsia Corp
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lesaka and DigiAsia is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Lesaka Technologies and DigiAsia Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DigiAsia Corp 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 DigiAsia Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DigiAsia Corp has no effect on the direction of Lesaka Technologies i.e., Lesaka Technologies and DigiAsia Corp go up and down completely randomly.
Pair Corralation between Lesaka Technologies and DigiAsia Corp
Given the investment horizon of 90 days Lesaka Technologies is expected to generate 0.23 times more return on investment than DigiAsia Corp. However, Lesaka Technologies is 4.39 times less risky than DigiAsia Corp. It trades about 0.05 of its potential returns per unit of risk. DigiAsia Corp is currently generating about -0.06 per unit of risk. If you would invest 389.00 in Lesaka Technologies on September 26, 2024 and sell it today you would earn a total of 127.00 from holding Lesaka Technologies or generate 32.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 60.13% |
Values | Daily Returns |
Lesaka Technologies vs. DigiAsia Corp
Performance |
Timeline |
Lesaka Technologies |
DigiAsia Corp |
Lesaka Technologies and DigiAsia Corp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lesaka Technologies and DigiAsia Corp
The main advantage of trading using opposite Lesaka Technologies and DigiAsia Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lesaka Technologies position performs unexpectedly, DigiAsia Corp 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 DigiAsia Corp will offset losses from the drop in DigiAsia Corp's long position.Lesaka Technologies vs. Priority Technology Holdings | Lesaka Technologies vs. CSG Systems International | Lesaka Technologies vs. OneSpan | Lesaka Technologies vs. Sangoma Technologies Corp |
DigiAsia Corp vs. Lesaka Technologies | DigiAsia Corp vs. CSG Systems International | DigiAsia Corp vs. OneSpan | DigiAsia Corp vs. Sangoma Technologies Corp |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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