Correlation Between Alpha Modus and Lightspeed Commerce

Can any of the company-specific risk be diversified away by investing in both Alpha Modus 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 Alpha Modus and Lightspeed Commerce into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Alpha Modus Holdings, and Lightspeed Commerce, you can compare the effects of market volatilities on Alpha Modus 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 Alpha Modus with a short position of Lightspeed Commerce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alpha Modus and Lightspeed Commerce.

Diversification Opportunities for Alpha Modus and Lightspeed Commerce

0.73

Correlation Coefficient

Alpha Modus  Lightspeed Commerce

Poor diversification

The 3 months correlation between Alpha and Lightspeed is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Alpha Modus Holdings, and Lightspeed Commerce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lightspeed Commerce and Alpha Modus 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 Alpha Modus Holdings, 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 Alpha Modus i.e., Alpha Modus and Lightspeed Commerce go up and down completely randomly.

Pair Corralation between Alpha Modus and Lightspeed Commerce

Assuming the 90 days horizon Alpha Modus Holdings, is expected to generate 4.81 times more return on investment than Lightspeed Commerce. However, Alpha Modus is 4.81 times more volatile than Lightspeed Commerce. It trades about 0.1 of its potential returns per unit of risk. Lightspeed Commerce is currently generating about 0.15 per unit of risk. If you would invest  9.80  in Alpha Modus Holdings, on May 4, 2025 and sell it today you would earn a total of  3.20  from holding Alpha Modus Holdings, or generate 32.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	92.06%
Values	Daily Returns

Alpha Modus Holdings,  vs.  Lightspeed Commerce

Alpha Modus Holdings,

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Alpha Modus Holdings, are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain fundamental indicators, Alpha Modus showed solid returns over the last few months and may actually be approaching a breakup point.

Lightspeed Commerce

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Lightspeed Commerce are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Lightspeed Commerce exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Alpha Modus and Lightspeed Commerce

The main advantage of trading using opposite Alpha Modus and Lightspeed Commerce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alpha Modus 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.

The idea behind Alpha Modus Holdings, and Lightspeed Commerce 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.

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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.