Correlation Between CSG Systems and Lesaka Technologies
Can any of the company-specific risk be diversified away by investing in both CSG Systems 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 CSG Systems and Lesaka Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CSG Systems International and Lesaka Technologies, you can compare the effects of market volatilities on CSG Systems 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 CSG Systems with a short position of Lesaka Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSG Systems and Lesaka Technologies.
Diversification Opportunities for CSG Systems and Lesaka Technologies
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CSG and Lesaka is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding CSG Systems International and Lesaka Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lesaka Technologies and CSG Systems 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 CSG Systems International 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 CSG Systems i.e., CSG Systems and Lesaka Technologies go up and down completely randomly.
Pair Corralation between CSG Systems and Lesaka Technologies
Given the investment horizon of 90 days CSG Systems is expected to generate 2.54 times less return on investment than Lesaka Technologies. But when comparing it to its historical volatility, CSG Systems International is 1.36 times less risky than Lesaka Technologies. It trades about 0.03 of its potential returns per unit of risk. Lesaka Technologies is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 348.00 in Lesaka Technologies on August 27, 2024 and sell it today you would earn a total of 178.00 from holding Lesaka Technologies or generate 51.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSG Systems International vs. Lesaka Technologies
Performance |
| Timeline |
| CSG Systems International |
| Lesaka Technologies |
CSG Systems and Lesaka Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSG Systems and Lesaka Technologies
The main advantage of trading using opposite CSG Systems and Lesaka Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSG Systems 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.| CSG Systems vs. Oneconnect Financial Technology | CSG Systems vs. Global Business Travel | CSG Systems vs. Alight Inc | CSG Systems vs. CS Disco LLC |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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