Correlation Between Cemtrex Pref and Lesaka Technologies
Can any of the company-specific risk be diversified away by investing in both Cemtrex Pref 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 Cemtrex Pref and Lesaka Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cemtrex Pref and Lesaka Technologies, you can compare the effects of market volatilities on Cemtrex Pref 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 Cemtrex Pref with a short position of Lesaka Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cemtrex Pref and Lesaka Technologies.
Diversification Opportunities for Cemtrex Pref and Lesaka Technologies
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cemtrex and Lesaka is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Cemtrex Pref and Lesaka Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lesaka Technologies and Cemtrex Pref 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 Cemtrex Pref 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 Cemtrex Pref i.e., Cemtrex Pref and Lesaka Technologies go up and down completely randomly.
Pair Corralation between Cemtrex Pref and Lesaka Technologies
If you would invest 85.00 in Cemtrex Pref on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Cemtrex Pref or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Cemtrex Pref vs. Lesaka Technologies
Performance |
| Timeline |
| Cemtrex Pref |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Lesaka Technologies |
Cemtrex Pref and Lesaka Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cemtrex Pref and Lesaka Technologies
The main advantage of trading using opposite Cemtrex Pref and Lesaka Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cemtrex Pref 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.| Cemtrex Pref vs. Alarum Technologies | Cemtrex Pref vs. Bridgeline Digital | Cemtrex Pref vs. authID Inc | Cemtrex Pref vs. EverCommerce |
| Lesaka Technologies vs. Priority Technology Holdings | Lesaka Technologies vs. CSG Systems International | Lesaka Technologies vs. OneSpan | Lesaka Technologies 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |