Correlation Between Ascendis Health and Lesaka Technologies
Can any of the company-specific risk be diversified away by investing in both Ascendis Health 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 Ascendis Health and Lesaka Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ascendis Health and Lesaka Technologies, you can compare the effects of market volatilities on Ascendis Health 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 Ascendis Health with a short position of Lesaka Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascendis Health and Lesaka Technologies.
Diversification Opportunities for Ascendis Health and Lesaka Technologies
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ascendis and Lesaka is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Ascendis Health and Lesaka Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lesaka Technologies and Ascendis Health 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 Ascendis Health 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 Ascendis Health i.e., Ascendis Health and Lesaka Technologies go up and down completely randomly.
Pair Corralation between Ascendis Health and Lesaka Technologies
Assuming the 90 days trading horizon Ascendis Health is expected to generate 1.9 times more return on investment than Lesaka Technologies. However, Ascendis Health is 1.9 times more volatile than Lesaka Technologies. It trades about 0.06 of its potential returns per unit of risk. Lesaka Technologies is currently generating about 0.0 per unit of risk. If you would invest 7,100 in Ascendis Health on November 6, 2024 and sell it today you would earn a total of 700.00 from holding Ascendis Health or generate 9.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ascendis Health vs. Lesaka Technologies
Performance |
| Timeline |
| Ascendis Health |
| Lesaka Technologies |
Ascendis Health and Lesaka Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascendis Health and Lesaka Technologies
The main advantage of trading using opposite Ascendis Health and Lesaka Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascendis Health 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.| Ascendis Health vs. MC Mining | Ascendis Health vs. Bytes Technology | Ascendis Health vs. Kap Industrial Holdings | Ascendis Health vs. Copper 360 |
| Lesaka Technologies vs. African Media Entertainment | Lesaka Technologies vs. ABSA Bank Limited | Lesaka Technologies vs. Trematon Capital Investments | Lesaka Technologies vs. Mantengu Mining |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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