Correlation Between Real Matters and Lightspeed Commerce
Can any of the company-specific risk be diversified away by investing in both Real Matters and Lightspeed Commerce 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 Real Matters and Lightspeed Commerce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Real Matters and Lightspeed Commerce, you can compare the effects of market volatilities on Real Matters and Lightspeed Commerce 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 Real Matters with a short position of Lightspeed Commerce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Real Matters and Lightspeed Commerce.
Diversification Opportunities for Real Matters and Lightspeed Commerce
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Real and Lightspeed is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Real Matters and Lightspeed Commerce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lightspeed Commerce and Real Matters 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 Real Matters are associated (or correlated) with Lightspeed Commerce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lightspeed Commerce has no effect on the direction of Real Matters i.e., Real Matters and Lightspeed Commerce go up and down completely randomly.
Pair Corralation between Real Matters and Lightspeed Commerce
Assuming the 90 days trading horizon Real Matters is expected to under-perform the Lightspeed Commerce. But the stock apears to be less risky and, when comparing its historical volatility, Real Matters is 1.62 times less risky than Lightspeed Commerce. The stock trades about -0.09 of its potential returns per unit of risk. The Lightspeed Commerce is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,370 in Lightspeed Commerce on April 23, 2025 and sell it today you would earn a total of 401.00 from holding Lightspeed Commerce or generate 29.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Real Matters vs. Lightspeed Commerce
Performance |
Timeline |
Real Matters |
Lightspeed Commerce |
Real Matters and Lightspeed Commerce Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Real Matters and Lightspeed Commerce
The main advantage of trading using opposite Real Matters and Lightspeed Commerce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Real Matters position performs unexpectedly, Lightspeed Commerce 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 Lightspeed Commerce will offset losses from the drop in Lightspeed Commerce's long position.Real Matters vs. Docebo Inc | Real Matters vs. Dye Durham | Real Matters vs. Enghouse Systems | Real Matters vs. Kinaxis |
Lightspeed Commerce vs. Lightspeed Commerce | Lightspeed Commerce vs. Shopify | Lightspeed Commerce vs. Docebo Inc | Lightspeed Commerce vs. Dye Durham |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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