Correlation Between Afine Investments and Lesaka Technologies
Can any of the company-specific risk be diversified away by investing in both Afine Investments 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 Afine Investments and Lesaka Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Afine Investments and Lesaka Technologies, you can compare the effects of market volatilities on Afine Investments 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 Afine Investments with a short position of Lesaka Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Afine Investments and Lesaka Technologies.
Diversification Opportunities for Afine Investments and Lesaka Technologies
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Afine and Lesaka is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Afine Investments and Lesaka Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lesaka Technologies and Afine Investments 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 Afine Investments 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 Afine Investments i.e., Afine Investments and Lesaka Technologies go up and down completely randomly.
Pair Corralation between Afine Investments and Lesaka Technologies
Assuming the 90 days trading horizon Afine Investments is expected to generate 17.72 times more return on investment than Lesaka Technologies. However, Afine Investments is 17.72 times more volatile than Lesaka Technologies. It trades about 0.07 of its potential returns per unit of risk. Lesaka Technologies is currently generating about 0.03 per unit of risk. If you would invest 35,896 in Afine Investments on August 24, 2024 and sell it today you would earn a total of 4,104 from holding Afine Investments or generate 11.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Afine Investments vs. Lesaka Technologies
Performance |
| Timeline |
| Afine Investments |
| Lesaka Technologies |
Afine Investments and Lesaka Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Afine Investments and Lesaka Technologies
The main advantage of trading using opposite Afine Investments and Lesaka Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Afine Investments 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.| Afine Investments vs. Schroder European Real | Afine Investments vs. Centaur Bci Balanced | Afine Investments vs. Sabvest Capital | Afine Investments vs. Growthpoint Properties |
| Lesaka Technologies vs. Bytes Technology | Lesaka Technologies vs. Centaur Bci Balanced | Lesaka Technologies vs. Growthpoint Properties | Lesaka Technologies vs. Bowler Metcalf |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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