Correlation Between Capri Holdings and Logitech International
Can any of the company-specific risk be diversified away by investing in both Capri Holdings 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 Capri Holdings and Logitech International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capri Holdings and Logitech International SA, you can compare the effects of market volatilities on Capri Holdings 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 Capri Holdings with a short position of Logitech International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and Logitech International.
Diversification Opportunities for Capri Holdings and Logitech International
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Capri and Logitech is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and Logitech International SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logitech International and Capri Holdings 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 Capri Holdings 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 Capri Holdings i.e., Capri Holdings and Logitech International go up and down completely randomly.
Pair Corralation between Capri Holdings and Logitech International
Given the investment horizon of 90 days Capri Holdings is expected to generate 1.79 times more return on investment than Logitech International. However, Capri Holdings is 1.79 times more volatile than Logitech International SA. It trades about 0.1 of its potential returns per unit of risk. Logitech International SA is currently generating about 0.0 per unit of risk. If you would invest 2,139 in Capri Holdings on August 29, 2024 and sell it today you would earn a total of 145.00 from holding Capri Holdings or generate 6.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capri Holdings vs. Logitech International SA
Performance |
| Timeline |
| Capri Holdings |
| Logitech International |
Capri Holdings and Logitech International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and Logitech International
The main advantage of trading using opposite Capri Holdings and Logitech International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings 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.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
| Logitech International vs. Geberit AG | Logitech International vs. Sika AG | Logitech International vs. Lonza Group AG | Logitech International vs. Swiss Life Holding |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |