Correlation Between Lesaka Technologies and Radware
Can any of the company-specific risk be diversified away by investing in both Lesaka Technologies and Radware 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 Radware into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lesaka Technologies and Radware, you can compare the effects of market volatilities on Lesaka Technologies and Radware 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 Radware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lesaka Technologies and Radware.
Diversification Opportunities for Lesaka Technologies and Radware
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lesaka and Radware is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Lesaka Technologies and Radware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Radware 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 Radware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Radware has no effect on the direction of Lesaka Technologies i.e., Lesaka Technologies and Radware go up and down completely randomly.
Pair Corralation between Lesaka Technologies and Radware
Given the investment horizon of 90 days Lesaka Technologies is expected to under-perform the Radware. In addition to that, Lesaka Technologies is 1.26 times more volatile than Radware. It trades about -0.05 of its total potential returns per unit of risk. Radware is currently generating about -0.01 per unit of volatility. If you would invest 2,236 in Radware on November 4, 2024 and sell it today you would lose (11.00) from holding Radware or give up 0.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lesaka Technologies vs. Radware
Performance |
| Timeline |
| Lesaka Technologies |
| Radware |
Lesaka Technologies and Radware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lesaka Technologies and Radware
The main advantage of trading using opposite Lesaka Technologies and Radware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lesaka Technologies position performs unexpectedly, Radware 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 Radware will offset losses from the drop in Radware'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 |
| Radware vs. Evertec | Radware vs. Consensus Cloud Solutions | Radware vs. Global Blue Group | Radware vs. CSG Systems International |
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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