Correlation Between Cenovus Energy and Lightspeed Commerce
Can any of the company-specific risk be diversified away by investing in both Cenovus Energy 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 Cenovus Energy and Lightspeed Commerce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cenovus Energy and Lightspeed Commerce, you can compare the effects of market volatilities on Cenovus Energy 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 Cenovus Energy with a short position of Lightspeed Commerce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cenovus Energy and Lightspeed Commerce.
Diversification Opportunities for Cenovus Energy and Lightspeed Commerce
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cenovus and Lightspeed is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Cenovus Energy and Lightspeed Commerce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lightspeed Commerce and Cenovus Energy 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 Cenovus Energy 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 Cenovus Energy i.e., Cenovus Energy and Lightspeed Commerce go up and down completely randomly.
Pair Corralation between Cenovus Energy and Lightspeed Commerce
Considering the 90-day investment horizon Cenovus Energy is expected to generate 0.82 times more return on investment than Lightspeed Commerce. However, Cenovus Energy is 1.22 times less risky than Lightspeed Commerce. It trades about 0.14 of its potential returns per unit of risk. Lightspeed Commerce is currently generating about 0.04 per unit of risk. If you would invest 1,359 in Cenovus Energy on June 9, 2025 and sell it today you would earn a total of 236.00 from holding Cenovus Energy or generate 17.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cenovus Energy vs. Lightspeed Commerce
Performance |
| Timeline |
| Cenovus Energy |
| Lightspeed Commerce |
Cenovus Energy and Lightspeed Commerce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cenovus Energy and Lightspeed Commerce
The main advantage of trading using opposite Cenovus Energy and Lightspeed Commerce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cenovus Energy 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.| Cenovus Energy vs. Imperial Oil | Cenovus Energy vs. Exxon Mobil Corp | Cenovus Energy vs. Chevron Corp | Cenovus Energy vs. BP PLC ADR |
| Lightspeed Commerce vs. SHOPIFY INC | Lightspeed Commerce vs. Docebo Inc | Lightspeed Commerce vs. Unity Software | Lightspeed Commerce vs. Fastly Inc |
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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