Correlation Between Rackspace Technology and Lesaka Technologies
Can any of the company-specific risk be diversified away by investing in both Rackspace Technology and Lesaka Technologies 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 Rackspace Technology and Lesaka Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rackspace Technology and Lesaka Technologies, you can compare the effects of market volatilities on Rackspace Technology and Lesaka Technologies 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 Rackspace Technology with a short position of Lesaka Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rackspace Technology and Lesaka Technologies.
Diversification Opportunities for Rackspace Technology and Lesaka Technologies
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rackspace and Lesaka is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Rackspace Technology and Lesaka Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lesaka Technologies and Rackspace Technology 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 Rackspace Technology are associated (or correlated) with Lesaka Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lesaka Technologies has no effect on the direction of Rackspace Technology i.e., Rackspace Technology and Lesaka Technologies go up and down completely randomly.
Pair Corralation between Rackspace Technology and Lesaka Technologies
Considering the 90-day investment horizon Rackspace Technology is expected to generate 2.26 times more return on investment than Lesaka Technologies. However, Rackspace Technology is 2.26 times more volatile than Lesaka Technologies. It trades about 0.01 of its potential returns per unit of risk. Lesaka Technologies is currently generating about -0.12 per unit of risk. If you would invest 120.00 in Rackspace Technology on August 17, 2025 and sell it today you would lose (6.00) from holding Rackspace Technology or give up 5.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rackspace Technology vs. Lesaka Technologies
Performance |
| Timeline |
| Rackspace Technology |
| Lesaka Technologies |
Rackspace Technology and Lesaka Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rackspace Technology and Lesaka Technologies
The main advantage of trading using opposite Rackspace Technology and Lesaka Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rackspace Technology position performs unexpectedly, Lesaka Technologies 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 Lesaka Technologies will offset losses from the drop in Lesaka Technologies' long position.| Rackspace Technology vs. Lesaka Technologies | Rackspace Technology vs. Repay Holdings Corp | Rackspace Technology vs. Veritone | Rackspace Technology vs. Gorilla Technology Group |
| Lesaka Technologies vs. Repay Holdings Corp | Lesaka Technologies vs. Veritone | Lesaka Technologies vs. Rackspace Technology | Lesaka Technologies vs. Palladyne AI Corp |
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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