Correlation Between Radware and Lesaka Technologies
Can any of the company-specific risk be diversified away by investing in both Radware and Lesaka Technologies 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 Radware and Lesaka Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Radware and Lesaka Technologies, you can compare the effects of market volatilities on Radware and Lesaka Technologies 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 Radware with a short position of Lesaka Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Radware and Lesaka Technologies.
Diversification Opportunities for Radware and Lesaka Technologies
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Radware and Lesaka is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Radware and Lesaka Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lesaka Technologies and Radware 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 Radware are associated (or correlated) with Lesaka Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lesaka Technologies has no effect on the direction of Radware i.e., Radware and Lesaka Technologies go up and down completely randomly.
Pair Corralation between Radware and Lesaka Technologies
Given the investment horizon of 90 days Radware is expected to generate 0.8 times more return on investment than Lesaka Technologies. However, Radware is 1.26 times less risky than Lesaka Technologies. It trades about -0.01 of its potential returns per unit of risk. Lesaka Technologies is currently generating about -0.05 per unit of risk. 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 |
Radware vs. Lesaka Technologies
Performance |
| Timeline |
| Radware |
| Lesaka Technologies |
Radware and Lesaka Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Radware and Lesaka Technologies
The main advantage of trading using opposite Radware and Lesaka Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Radware position performs unexpectedly, Lesaka Technologies 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 Lesaka Technologies will offset losses from the drop in Lesaka Technologies' long position.| Radware vs. Evertec | Radware vs. Consensus Cloud Solutions | Radware vs. Global Blue Group | Radware vs. CSG Systems International |
| Lesaka Technologies vs. Priority Technology Holdings | Lesaka Technologies vs. CSG Systems International | Lesaka Technologies vs. OneSpan | Lesaka Technologies vs. Sangoma Technologies Corp |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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