Correlation Between Canon and Logitech International
Can any of the company-specific risk be diversified away by investing in both Canon and Logitech International 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 Canon and Logitech International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canon Inc and Logitech International SA, you can compare the effects of market volatilities on Canon and Logitech International 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 Canon with a short position of Logitech International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canon and Logitech International.
Diversification Opportunities for Canon and Logitech International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Canon and Logitech is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Canon Inc and Logitech International SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logitech International and Canon 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 Canon Inc are associated (or correlated) with Logitech International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logitech International has no effect on the direction of Canon i.e., Canon and Logitech International go up and down completely randomly.
Pair Corralation between Canon and Logitech International
If you would invest 6,920 in Logitech International SA on September 4, 2024 and sell it today you would earn a total of 1,303 from holding Logitech International SA or generate 18.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Canon Inc vs. Logitech International SA
Performance |
| Timeline |
| Canon Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Logitech International |
Canon and Logitech International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canon and Logitech International
The main advantage of trading using opposite Canon and Logitech International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canon position performs unexpectedly, Logitech International 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 Logitech International will offset losses from the drop in Logitech International's long position.| Canon vs. Dave Busters Entertainment | Canon vs. Centessa Pharmaceuticals PLC | Canon vs. Sweetgreen | Canon vs. BioNTech SE |
| Logitech International vs. Pure Storage | Logitech International vs. Seagate Technology PLC | Logitech International vs. HP Inc | Logitech International vs. Dell Technologies |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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