Correlation Between Lightspeed Commerce and Porch
Can any of the company-specific risk be diversified away by investing in both Lightspeed Commerce and Porch 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 Lightspeed Commerce and Porch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lightspeed Commerce and Porch Group, you can compare the effects of market volatilities on Lightspeed Commerce and Porch 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 Lightspeed Commerce with a short position of Porch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lightspeed Commerce and Porch.
Diversification Opportunities for Lightspeed Commerce and Porch
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lightspeed and Porch is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Lightspeed Commerce and Porch Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Porch Group and Lightspeed Commerce 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 Lightspeed Commerce are associated (or correlated) with Porch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Porch Group has no effect on the direction of Lightspeed Commerce i.e., Lightspeed Commerce and Porch go up and down completely randomly.
Pair Corralation between Lightspeed Commerce and Porch
Given the investment horizon of 90 days Lightspeed Commerce is expected to generate 0.61 times more return on investment than Porch. However, Lightspeed Commerce is 1.63 times less risky than Porch. It trades about 0.0 of its potential returns per unit of risk. Porch Group is currently generating about -0.12 per unit of risk. If you would invest 1,172 in Lightspeed Commerce on August 21, 2025 and sell it today you would lose (39.00) from holding Lightspeed Commerce or give up 3.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lightspeed Commerce vs. Porch Group
Performance |
| Timeline |
| Lightspeed Commerce |
| Porch Group |
Lightspeed Commerce and Porch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lightspeed Commerce and Porch
The main advantage of trading using opposite Lightspeed Commerce and Porch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lightspeed Commerce position performs unexpectedly, Porch 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 Porch will offset losses from the drop in Porch's long position.| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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