Correlation Between CA Sales and Lesaka Technologies
Can any of the company-specific risk be diversified away by investing in both CA Sales 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 CA Sales and Lesaka Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CA Sales Holdings and Lesaka Technologies, you can compare the effects of market volatilities on CA Sales 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 CA Sales with a short position of Lesaka Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of CA Sales and Lesaka Technologies.
Diversification Opportunities for CA Sales and Lesaka Technologies
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CAA and Lesaka is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding CA Sales Holdings and Lesaka Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lesaka Technologies and CA Sales 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 CA Sales Holdings 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 CA Sales i.e., CA Sales and Lesaka Technologies go up and down completely randomly.
Pair Corralation between CA Sales and Lesaka Technologies
Assuming the 90 days trading horizon CA Sales Holdings is expected to generate 0.58 times more return on investment than Lesaka Technologies. However, CA Sales Holdings is 1.74 times less risky than Lesaka Technologies. It trades about 0.1 of its potential returns per unit of risk. Lesaka Technologies is currently generating about 0.05 per unit of risk. If you would invest 94,323 in CA Sales Holdings on August 24, 2024 and sell it today you would earn a total of 62,677 from holding CA Sales Holdings or generate 66.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
CA Sales Holdings vs. Lesaka Technologies
Performance |
| Timeline |
| CA Sales Holdings |
| Lesaka Technologies |
CA Sales and Lesaka Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CA Sales and Lesaka Technologies
The main advantage of trading using opposite CA Sales and Lesaka Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CA Sales 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.| CA Sales vs. Hosken Consolidated Investments | CA Sales vs. Zeder Investments | CA Sales vs. Kumba Iron Ore | CA Sales vs. Astoria Investments |
| 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |