Correlation Between Lightspeed Commerce and BlackBerry
Can any of the company-specific risk be diversified away by investing in both Lightspeed Commerce and BlackBerry 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 Lightspeed Commerce and BlackBerry into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lightspeed Commerce and BlackBerry, you can compare the effects of market volatilities on Lightspeed Commerce and BlackBerry 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 Lightspeed Commerce with a short position of BlackBerry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lightspeed Commerce and BlackBerry.
Diversification Opportunities for Lightspeed Commerce and BlackBerry
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lightspeed and BlackBerry is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Lightspeed Commerce and BlackBerry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackBerry and Lightspeed Commerce 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 Lightspeed Commerce are associated (or correlated) with BlackBerry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackBerry has no effect on the direction of Lightspeed Commerce i.e., Lightspeed Commerce and BlackBerry go up and down completely randomly.
Pair Corralation between Lightspeed Commerce and BlackBerry
Assuming the 90 days trading horizon Lightspeed Commerce is expected to generate 1.04 times more return on investment than BlackBerry. However, Lightspeed Commerce is 1.04 times more volatile than BlackBerry. It trades about 0.22 of its potential returns per unit of risk. BlackBerry is currently generating about 0.03 per unit of risk. If you would invest 1,786 in Lightspeed Commerce on August 25, 2024 and sell it today you would earn a total of 694.00 from holding Lightspeed Commerce or generate 38.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lightspeed Commerce vs. BlackBerry
Performance |
| Timeline |
| Lightspeed Commerce |
| BlackBerry |
Lightspeed Commerce and BlackBerry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lightspeed Commerce and BlackBerry
The main advantage of trading using opposite Lightspeed Commerce and BlackBerry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lightspeed Commerce position performs unexpectedly, BlackBerry 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 BlackBerry will offset losses from the drop in BlackBerry's long position.| Lightspeed Commerce vs. Shopify | Lightspeed Commerce vs. WELL Health Technologies | Lightspeed Commerce vs. BlackBerry | Lightspeed Commerce vs. Docebo Inc |
| BlackBerry vs. Air Canada | BlackBerry vs. Lightspeed Commerce | BlackBerry vs. Shopify | BlackBerry vs. Suncor Energy |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |