Correlation Between Lesaka Technologies and Boxer Retail
Can any of the company-specific risk be diversified away by investing in both Lesaka Technologies and Boxer Retail 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 Boxer Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lesaka Technologies and Boxer Retail, you can compare the effects of market volatilities on Lesaka Technologies and Boxer Retail 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 Boxer Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lesaka Technologies and Boxer Retail.
Diversification Opportunities for Lesaka Technologies and Boxer Retail
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lesaka and Boxer is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Lesaka Technologies and Boxer Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boxer Retail 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 Boxer Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boxer Retail has no effect on the direction of Lesaka Technologies i.e., Lesaka Technologies and Boxer Retail go up and down completely randomly.
Pair Corralation between Lesaka Technologies and Boxer Retail
Assuming the 90 days trading horizon Lesaka Technologies is expected to generate 5.69 times less return on investment than Boxer Retail. But when comparing it to its historical volatility, Lesaka Technologies is 1.21 times less risky than Boxer Retail. It trades about 0.04 of its potential returns per unit of risk. Boxer Retail is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 540,000 in Boxer Retail on October 24, 2024 and sell it today you would earn a total of 136,500 from holding Boxer Retail or generate 25.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 61.67% |
| Values | Daily Returns |
Lesaka Technologies vs. Boxer Retail
Performance |
| Timeline |
| Lesaka Technologies |
| Boxer Retail |
Lesaka Technologies and Boxer Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lesaka Technologies and Boxer Retail
The main advantage of trading using opposite Lesaka Technologies and Boxer Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lesaka Technologies position performs unexpectedly, Boxer Retail 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 Boxer Retail will offset losses from the drop in Boxer Retail's long position.| Lesaka Technologies vs. City Lodge Hotels | Lesaka Technologies vs. Frontier Transport Holdings | Lesaka Technologies vs. Kumba Iron Ore | Lesaka Technologies vs. CA Sales Holdings |
| Boxer Retail vs. ABSA Bank Limited | Boxer Retail vs. CA Sales Holdings | Boxer Retail vs. Life Healthcare | Boxer Retail vs. Lesaka Technologies |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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