Correlation Between Copper 360 and Lesaka Technologies
Can any of the company-specific risk be diversified away by investing in both Copper 360 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 Copper 360 and Lesaka Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Copper 360 and Lesaka Technologies, you can compare the effects of market volatilities on Copper 360 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 Copper 360 with a short position of Lesaka Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Copper 360 and Lesaka Technologies.
Diversification Opportunities for Copper 360 and Lesaka Technologies
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Copper and Lesaka is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Copper 360 and Lesaka Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lesaka Technologies and Copper 360 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 Copper 360 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 Copper 360 i.e., Copper 360 and Lesaka Technologies go up and down completely randomly.
Pair Corralation between Copper 360 and Lesaka Technologies
Assuming the 90 days trading horizon Copper 360 is expected to generate 35.19 times more return on investment than Lesaka Technologies. However, Copper 360 is 35.19 times more volatile than Lesaka Technologies. It trades about 0.12 of its potential returns per unit of risk. Lesaka Technologies is currently generating about 0.04 per unit of risk. If you would invest 46,800 in Copper 360 on September 2, 2024 and sell it today you would lose (17,800) from holding Copper 360 or give up 38.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.15% |
| Values | Daily Returns |
Copper 360 vs. Lesaka Technologies
Performance |
| Timeline |
| Copper 360 |
| Lesaka Technologies |
Copper 360 and Lesaka Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Copper 360 and Lesaka Technologies
The main advantage of trading using opposite Copper 360 and Lesaka Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Copper 360 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.| Copper 360 vs. Advtech | Copper 360 vs. Reinet Investments SCA | Copper 360 vs. Lesaka Technologies | Copper 360 vs. Zeder Investments |
| Lesaka Technologies vs. Bytes Technology | Lesaka Technologies vs. Sasol Ltd Bee | Lesaka Technologies vs. Growthpoint Properties | Lesaka Technologies vs. AfricaRhodium ETF |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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