Correlation Between Lesaka Technologies and Payoneer Global

Can any of the company-specific risk be diversified away by investing in both Lesaka Technologies and Payoneer Global 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 Payoneer Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Lesaka Technologies and Payoneer Global, you can compare the effects of market volatilities on Lesaka Technologies and Payoneer Global 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 Payoneer Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lesaka Technologies and Payoneer Global.

Diversification Opportunities for Lesaka Technologies and Payoneer Global

0.52

Correlation Coefficient

Lesaka Technologies  Payoneer Global

Very weak diversification

The 3 months correlation between Lesaka and Payoneer is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Lesaka Technologies and Payoneer Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payoneer Global 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 Payoneer Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payoneer Global has no effect on the direction of Lesaka Technologies i.e., Lesaka Technologies and Payoneer Global go up and down completely randomly.

Pair Corralation between Lesaka Technologies and Payoneer Global

Given the investment horizon of 90 days Lesaka Technologies is expected to generate 0.66 times more return on investment than Payoneer Global. However, Lesaka Technologies is 1.52 times less risky than Payoneer Global. It trades about -0.05 of its potential returns per unit of risk. Payoneer Global is currently generating about -0.15 per unit of risk. If you would invest  525.00  in Lesaka Technologies on September 25, 2024 and sell it today you would lose (9.00) from holding Lesaka Technologies or give up 1.71% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Lesaka Technologies  vs.  Payoneer Global

Lesaka Technologies

Risk-Adjusted Performance

2 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Lesaka Technologies are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Lesaka Technologies is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.

Payoneer Global

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Payoneer Global are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, Payoneer Global displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Lesaka Technologies and Payoneer Global

The main advantage of trading using opposite Lesaka Technologies and Payoneer Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lesaka Technologies position performs unexpectedly, Payoneer Global 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 Payoneer Global will offset losses from the drop in Payoneer Global's long position.

The idea behind Lesaka Technologies and Payoneer Global 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.

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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.