Correlation Between Lesaka Technologies and Sangoma Technologies

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

By analyzing existing cross correlation between Lesaka Technologies and Sangoma Technologies Corp, you can compare the effects of market volatilities on Lesaka Technologies and Sangoma 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 Lesaka Technologies with a short position of Sangoma Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lesaka Technologies and Sangoma Technologies.

Diversification Opportunities for Lesaka Technologies and Sangoma Technologies

0.38

Correlation Coefficient

Lesaka Technologies  Sangoma Technologies

Weak diversification

The 3 months correlation between Lesaka and Sangoma is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Lesaka Technologies and Sangoma Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sangoma Technologies Corp and Lesaka Technologies 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 Lesaka Technologies are associated (or correlated) with Sangoma Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sangoma Technologies Corp has no effect on the direction of Lesaka Technologies i.e., Lesaka Technologies and Sangoma Technologies go up and down completely randomly.

Pair Corralation between Lesaka Technologies and Sangoma Technologies

Given the investment horizon of 90 days Lesaka Technologies is expected to generate 1.0 times more return on investment than Sangoma Technologies. However, Lesaka Technologies is 1.0 times more volatile than Sangoma Technologies Corp. It trades about 0.07 of its potential returns per unit of risk. Sangoma Technologies Corp is currently generating about 0.0 per unit of risk. If you would invest  421.00  in Lesaka Technologies on May 8, 2025 and sell it today you would earn a total of  39.00  from holding Lesaka Technologies or generate 9.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Lesaka Technologies  vs.  Sangoma Technologies Corp

Lesaka Technologies

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Lesaka Technologies are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady basic indicators, Lesaka Technologies may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Sangoma Technologies Corp

Risk-Adjusted Performance

Weakest

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

Pair Trading with Lesaka Technologies and Sangoma Technologies

The main advantage of trading using opposite Lesaka Technologies and Sangoma Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lesaka Technologies position performs unexpectedly, Sangoma 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 Sangoma Technologies will offset losses from the drop in Sangoma Technologies' long position.

The idea behind Lesaka Technologies and Sangoma Technologies Corp 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.