Correlation Between Lesaka Technologies and Astoria Investments
Can any of the company-specific risk be diversified away by investing in both Lesaka Technologies and Astoria Investments 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 Astoria Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lesaka Technologies and Astoria Investments, you can compare the effects of market volatilities on Lesaka Technologies and Astoria Investments 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 Astoria Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lesaka Technologies and Astoria Investments.
Diversification Opportunities for Lesaka Technologies and Astoria Investments
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lesaka and Astoria is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Lesaka Technologies and Astoria Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astoria Investments 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 Astoria Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astoria Investments has no effect on the direction of Lesaka Technologies i.e., Lesaka Technologies and Astoria Investments go up and down completely randomly.
Pair Corralation between Lesaka Technologies and Astoria Investments
Assuming the 90 days trading horizon Lesaka Technologies is expected to generate 1.13 times more return on investment than Astoria Investments. However, Lesaka Technologies is 1.13 times more volatile than Astoria Investments. It trades about 0.05 of its potential returns per unit of risk. Astoria Investments is currently generating about 0.0 per unit of risk. If you would invest 675,000 in Lesaka Technologies on August 24, 2024 and sell it today you would earn a total of 207,600 from holding Lesaka Technologies or generate 30.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lesaka Technologies vs. Astoria Investments
Performance |
| Timeline |
| Lesaka Technologies |
| Astoria Investments |
Lesaka Technologies and Astoria Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lesaka Technologies and Astoria Investments
The main advantage of trading using opposite Lesaka Technologies and Astoria Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lesaka Technologies position performs unexpectedly, Astoria Investments 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 Astoria Investments will offset losses from the drop in Astoria Investments' long position.| Lesaka Technologies vs. Bytes Technology | Lesaka Technologies vs. Centaur Bci Balanced | Lesaka Technologies vs. Growthpoint Properties | Lesaka Technologies vs. Bowler Metcalf |
| Astoria Investments vs. Zeder Investments | Astoria Investments vs. Centaur Bci Balanced | Astoria Investments vs. Growthpoint Properties | Astoria Investments vs. Bowler Metcalf |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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