Correlation Between Lesaka Technologies and Cellebrite
Can any of the company-specific risk be diversified away by investing in both Lesaka Technologies and Cellebrite 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 Cellebrite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lesaka Technologies and Cellebrite DI, you can compare the effects of market volatilities on Lesaka Technologies and Cellebrite 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 Cellebrite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lesaka Technologies and Cellebrite.
Diversification Opportunities for Lesaka Technologies and Cellebrite
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lesaka and Cellebrite is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Lesaka Technologies and Cellebrite DI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cellebrite DI 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 Cellebrite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cellebrite DI has no effect on the direction of Lesaka Technologies i.e., Lesaka Technologies and Cellebrite go up and down completely randomly.
Pair Corralation between Lesaka Technologies and Cellebrite
Given the investment horizon of 90 days Lesaka Technologies is expected to under-perform the Cellebrite. But the stock apears to be less risky and, when comparing its historical volatility, Lesaka Technologies is 1.6 times less risky than Cellebrite. The stock trades about -0.07 of its potential returns per unit of risk. The Cellebrite DI is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,824 in Cellebrite DI on August 27, 2024 and sell it today you would earn a total of 148.00 from holding Cellebrite DI or generate 8.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lesaka Technologies vs. Cellebrite DI
Performance |
| Timeline |
| Lesaka Technologies |
| Cellebrite DI |
Lesaka Technologies and Cellebrite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lesaka Technologies and Cellebrite
The main advantage of trading using opposite Lesaka Technologies and Cellebrite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lesaka Technologies position performs unexpectedly, Cellebrite 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 Cellebrite will offset losses from the drop in Cellebrite's long position.| Lesaka Technologies vs. Priority Technology Holdings | Lesaka Technologies vs. CSG Systems International | Lesaka Technologies vs. OneSpan | Lesaka Technologies vs. Sangoma Technologies Corp |
| Cellebrite vs. CSG Systems International | Cellebrite vs. Consensus Cloud Solutions | Cellebrite vs. Secureworks Corp | Cellebrite vs. Evertec |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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