Correlation Between Ballard Power and Lightspeed Commerce
Can any of the company-specific risk be diversified away by investing in both Ballard Power and Lightspeed Commerce 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 Ballard Power and Lightspeed Commerce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ballard Power Systems and Lightspeed Commerce, you can compare the effects of market volatilities on Ballard Power and Lightspeed Commerce 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 Ballard Power with a short position of Lightspeed Commerce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ballard Power and Lightspeed Commerce.
Diversification Opportunities for Ballard Power and Lightspeed Commerce
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ballard and Lightspeed is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Ballard Power Systems and Lightspeed Commerce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lightspeed Commerce and Ballard Power 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 Ballard Power Systems are associated (or correlated) with Lightspeed Commerce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lightspeed Commerce has no effect on the direction of Ballard Power i.e., Ballard Power and Lightspeed Commerce go up and down completely randomly.
Pair Corralation between Ballard Power and Lightspeed Commerce
Assuming the 90 days trading horizon Ballard Power Systems is expected to under-perform the Lightspeed Commerce. In addition to that, Ballard Power is 1.17 times more volatile than Lightspeed Commerce. It trades about -0.09 of its total potential returns per unit of risk. Lightspeed Commerce is currently generating about 0.03 per unit of volatility. If you would invest 2,282 in Lightspeed Commerce on August 25, 2024 and sell it today you would earn a total of 198.00 from holding Lightspeed Commerce or generate 8.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ballard Power Systems vs. Lightspeed Commerce
Performance |
| Timeline |
| Ballard Power Systems |
| Lightspeed Commerce |
Ballard Power and Lightspeed Commerce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ballard Power and Lightspeed Commerce
The main advantage of trading using opposite Ballard Power and Lightspeed Commerce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ballard Power position performs unexpectedly, Lightspeed Commerce 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 Lightspeed Commerce will offset losses from the drop in Lightspeed Commerce's long position.| Ballard Power vs. Northstar Clean Technologies | Ballard Power vs. TGS Esports | Ballard Power vs. Boat Rocker Media | Ballard Power vs. iSign Media Solutions |
| Lightspeed Commerce vs. Shopify | Lightspeed Commerce vs. WELL Health Technologies | Lightspeed Commerce vs. BlackBerry | Lightspeed Commerce vs. Docebo Inc |
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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