Correlation Between ADEIA P and Lightspeed Commerce
Can any of the company-specific risk be diversified away by investing in both ADEIA P 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 ADEIA P and Lightspeed Commerce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ADEIA P and Lightspeed Commerce, you can compare the effects of market volatilities on ADEIA P 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 ADEIA P with a short position of Lightspeed Commerce. Check out your portfolio center. Please also check ongoing floating volatility patterns of ADEIA P and Lightspeed Commerce.
Diversification Opportunities for ADEIA P and Lightspeed Commerce
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ADEIA and Lightspeed is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding ADEIA P and Lightspeed Commerce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lightspeed Commerce and ADEIA P 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 ADEIA P 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 ADEIA P i.e., ADEIA P and Lightspeed Commerce go up and down completely randomly.
Pair Corralation between ADEIA P and Lightspeed Commerce
Given the investment horizon of 90 days ADEIA P is expected to generate 1.68 times more return on investment than Lightspeed Commerce. However, ADEIA P is 1.68 times more volatile than Lightspeed Commerce. It trades about 0.07 of its potential returns per unit of risk. Lightspeed Commerce is currently generating about 0.06 per unit of risk. If you would invest 1,568 in ADEIA P on October 11, 2025 and sell it today you would earn a total of 227.00 from holding ADEIA P or generate 14.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ADEIA P vs. Lightspeed Commerce
Performance |
| Timeline |
| ADEIA P |
| Lightspeed Commerce |
ADEIA P and Lightspeed Commerce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ADEIA P and Lightspeed Commerce
The main advantage of trading using opposite ADEIA P and Lightspeed Commerce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ADEIA P 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.| ADEIA P vs. Porch Group | ADEIA P vs. Kodiak AI Common | ADEIA P vs. Lightspeed Commerce | ADEIA P vs. Karooooo |
| Lightspeed Commerce vs. Alight Inc | Lightspeed Commerce vs. Karooooo | Lightspeed Commerce vs. PAR Technology | Lightspeed Commerce vs. Kodiak AI Common |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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