Correlation Between Lesaka Technologies and CCC Intelligent

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Can any of the company-specific risk be diversified away by investing in both Lesaka Technologies and CCC Intelligent 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 CCC Intelligent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lesaka Technologies and CCC Intelligent Solutions, you can compare the effects of market volatilities on Lesaka Technologies and CCC Intelligent 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 CCC Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lesaka Technologies and CCC Intelligent.

Diversification Opportunities for Lesaka Technologies and CCC Intelligent

LesakaCCCDiversified AwayLesakaCCCDiversified Away100%
0.37
  Correlation Coefficient

Weak diversification

The 3 months correlation between Lesaka and CCC is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Lesaka Technologies and CCC Intelligent Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCC Intelligent Solutions 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 CCC Intelligent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCC Intelligent Solutions has no effect on the direction of Lesaka Technologies i.e., Lesaka Technologies and CCC Intelligent go up and down completely randomly.

Pair Corralation between Lesaka Technologies and CCC Intelligent

Given the investment horizon of 90 days Lesaka Technologies is expected to generate 1.03 times less return on investment than CCC Intelligent. In addition to that, Lesaka Technologies is 1.36 times more volatile than CCC Intelligent Solutions. It trades about 0.1 of its total potential returns per unit of risk. CCC Intelligent Solutions is currently generating about 0.15 per unit of volatility. If you would invest  1,082  in CCC Intelligent Solutions on September 18, 2024 and sell it today you would earn a total of  131.00  from holding CCC Intelligent Solutions or generate 12.11% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Lesaka Technologies  vs.  CCC Intelligent Solutions

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec 0510152025
JavaScript chart by amCharts 3.21.15LSAK CCCS
       Timeline  
Lesaka Technologies 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Lesaka Technologies are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady basic indicators, Lesaka Technologies may actually be approaching a critical reversion point that can send shares even higher in January 2025.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec4.64.855.25.45.6
CCC Intelligent Solutions 

Risk-Adjusted Performance

11 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in CCC Intelligent Solutions are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain fundamental indicators, CCC Intelligent may actually be approaching a critical reversion point that can send shares even higher in January 2025.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec10.51111.51212.5

Lesaka Technologies and CCC Intelligent Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-5.84-4.38-2.91-1.440.02441.543.124.696.26 0.050.100.150.20
JavaScript chart by amCharts 3.21.15LSAK CCCS
       Returns  

Pair Trading with Lesaka Technologies and CCC Intelligent

The main advantage of trading using opposite Lesaka Technologies and CCC Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lesaka Technologies position performs unexpectedly, CCC Intelligent 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 CCC Intelligent will offset losses from the drop in CCC Intelligent's long position.
The idea behind Lesaka Technologies and CCC Intelligent Solutions pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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