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 Equity, 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
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lesaka and Cellebrite is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Lesaka Technologies and Cellebrite DI Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cellebrite DI Equity 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 Equity 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 generate 10.27 times less return on investment than Cellebrite. But when comparing it to its historical volatility, Lesaka Technologies is 2.32 times less risky than Cellebrite. It trades about 0.05 of its potential returns per unit of risk. Cellebrite DI Equity is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 207.00 in Cellebrite DI Equity on September 1, 2024 and sell it today you would earn a total of 308.00 from holding Cellebrite DI Equity or generate 148.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 58.73% |
| Values | Daily Returns |
Lesaka Technologies vs. Cellebrite DI Equity
Performance |
| Timeline |
| Lesaka Technologies |
| Cellebrite DI Equity |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
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. Ryman Hospitality Properties | Cellebrite vs. Bt Brands | Cellebrite vs. Simpson Manufacturing | Cellebrite vs. Dave Busters Entertainment |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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