Correlation Between Lightspeed Commerce and Warehouse Group

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Can any of the company-specific risk be diversified away by investing in both Lightspeed Commerce and Warehouse Group 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 Warehouse Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lightspeed Commerce and Warehouse Group, you can compare the effects of market volatilities on Lightspeed Commerce and Warehouse Group 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 Warehouse Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lightspeed Commerce and Warehouse Group.

Diversification Opportunities for Lightspeed Commerce and Warehouse Group

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Lightspeed and Warehouse is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lightspeed Commerce and Warehouse Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Warehouse 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 Warehouse Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Warehouse Group has no effect on the direction of Lightspeed Commerce i.e., Lightspeed Commerce and Warehouse Group go up and down completely randomly.

Pair Corralation between Lightspeed Commerce and Warehouse Group

If you would invest  54.00  in Warehouse Group on August 30, 2025 and sell it today you would earn a total of  0.00  from holding Warehouse Group or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Lightspeed Commerce  vs.  Warehouse Group

 Performance 
       Timeline  
Lightspeed Commerce 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Lightspeed Commerce has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Lightspeed Commerce is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.
Warehouse Group 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Warehouse Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Warehouse Group is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Lightspeed Commerce and Warehouse Group Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Lightspeed Commerce and Warehouse Group

The main advantage of trading using opposite Lightspeed Commerce and Warehouse Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lightspeed Commerce position performs unexpectedly, Warehouse Group 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 Warehouse Group will offset losses from the drop in Warehouse Group's long position.
The idea behind Lightspeed Commerce and Warehouse Group 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

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