Correlation Between Lesaka Technologies and Allot Communications
Can any of the company-specific risk be diversified away by investing in both Lesaka Technologies and Allot Communications 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 Lesaka Technologies and Allot Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lesaka Technologies and Allot Communications, you can compare the effects of market volatilities on Lesaka Technologies and Allot Communications 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 Lesaka Technologies with a short position of Allot Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lesaka Technologies and Allot Communications.
Diversification Opportunities for Lesaka Technologies and Allot Communications
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lesaka and Allot is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Lesaka Technologies and Allot Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allot Communications and Lesaka Technologies 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 Lesaka Technologies are associated (or correlated) with Allot Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allot Communications has no effect on the direction of Lesaka Technologies i.e., Lesaka Technologies and Allot Communications go up and down completely randomly.
Pair Corralation between Lesaka Technologies and Allot Communications
Given the investment horizon of 90 days Lesaka Technologies is expected to generate 1.54 times less return on investment than Allot Communications. But when comparing it to its historical volatility, Lesaka Technologies is 1.21 times less risky than Allot Communications. It trades about 0.03 of its potential returns per unit of risk. Allot Communications is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 339.00 in Allot Communications on August 28, 2024 and sell it today you would earn a total of 118.00 from holding Allot Communications or generate 34.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lesaka Technologies vs. Allot Communications
Performance |
| Timeline |
| Lesaka Technologies |
| Allot Communications |
Lesaka Technologies and Allot Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lesaka Technologies and Allot Communications
The main advantage of trading using opposite Lesaka Technologies and Allot Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lesaka Technologies position performs unexpectedly, Allot Communications 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 Allot Communications will offset losses from the drop in Allot Communications' long position.| Lesaka Technologies vs. GigaCloud Technology Class | Lesaka Technologies vs. Telos Corp | Lesaka Technologies vs. Cemtrex | Lesaka Technologies vs. authID Inc |
| Allot Communications vs. GigaCloud Technology Class | Allot Communications vs. Arqit Quantum | Allot Communications vs. Cemtrex | Allot Communications vs. Paysafe |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |