Correlation Between Lightspeed Commerce and Software And

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

By analyzing existing cross correlation between Lightspeed Commerce and Software And It, you can compare the effects of market volatilities on Lightspeed Commerce and Software And 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 Software And. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lightspeed Commerce and Software And.

Diversification Opportunities for Lightspeed Commerce and Software And

0.82

Correlation Coefficient

Lightspeed Commerce  Software And

Very poor diversification

The 3 months correlation between Lightspeed and Software is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Lightspeed Commerce and Software And It in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Software And It 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 Software And. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Software And It has no effect on the direction of Lightspeed Commerce i.e., Lightspeed Commerce and Software And go up and down completely randomly.

Pair Corralation between Lightspeed Commerce and Software And

Given the investment horizon of 90 days Lightspeed Commerce is expected to generate 2.53 times more return on investment than Software And. However, Lightspeed Commerce is 2.53 times more volatile than Software And It. It trades about 0.2 of its potential returns per unit of risk. Software And It is currently generating about 0.21 per unit of risk. If you would invest  970.00  in Lightspeed Commerce on May 2, 2025 and sell it today you would earn a total of  352.00  from holding Lightspeed Commerce or generate 36.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.39%
Values	Daily Returns

Lightspeed Commerce  vs.  Software And It

Lightspeed Commerce

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Lightspeed Commerce are ranked lower than 15 (%) 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.

Software And It

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Software And It are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Software And showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Lightspeed Commerce and Software And

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

The idea behind Lightspeed Commerce and Software And It 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.