Correlation Between Lesaka Technologies and MC Mining
Can any of the company-specific risk be diversified away by investing in both Lesaka Technologies and MC Mining 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 MC Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lesaka Technologies and MC Mining, you can compare the effects of market volatilities on Lesaka Technologies and MC Mining 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 MC Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lesaka Technologies and MC Mining.
Diversification Opportunities for Lesaka Technologies and MC Mining
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lesaka and MCZ is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Lesaka Technologies and MC Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MC Mining 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 MC Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MC Mining has no effect on the direction of Lesaka Technologies i.e., Lesaka Technologies and MC Mining go up and down completely randomly.
Pair Corralation between Lesaka Technologies and MC Mining
Assuming the 90 days trading horizon Lesaka Technologies is expected to generate 0.76 times more return on investment than MC Mining. However, Lesaka Technologies is 1.32 times less risky than MC Mining. It trades about 0.03 of its potential returns per unit of risk. MC Mining is currently generating about -0.01 per unit of risk. If you would invest 766,100 in Lesaka Technologies on October 28, 2024 and sell it today you would earn a total of 140,600 from holding Lesaka Technologies or generate 18.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lesaka Technologies vs. MC Mining
Performance |
| Timeline |
| Lesaka Technologies |
| MC Mining |
Lesaka Technologies and MC Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lesaka Technologies and MC Mining
The main advantage of trading using opposite Lesaka Technologies and MC Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lesaka Technologies position performs unexpectedly, MC Mining 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 MC Mining will offset losses from the drop in MC Mining's long position.| Lesaka Technologies vs. Ascendis Health | Lesaka Technologies vs. Copper 360 | Lesaka Technologies vs. RCL Foods | Lesaka Technologies vs. CA Sales Holdings |
| MC Mining vs. Bytes Technology | MC Mining vs. HomeChoice Investments | MC Mining vs. Frontier Transport Holdings | MC Mining vs. Zeder Investments |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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