Correlation Between Empire State and Logitech International
Can any of the company-specific risk be diversified away by investing in both Empire State 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 Empire State and Logitech International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Empire State Realty and Logitech International SA, you can compare the effects of market volatilities on Empire State 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 Empire State with a short position of Logitech International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Empire State and Logitech International.
Diversification Opportunities for Empire State and Logitech International
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Empire and Logitech is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Empire State Realty and Logitech International SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logitech International and Empire State 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 Empire State Realty 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 Empire State i.e., Empire State and Logitech International go up and down completely randomly.
Pair Corralation between Empire State and Logitech International
Given the investment horizon of 90 days Empire State Realty is expected to generate 0.63 times more return on investment than Logitech International. However, Empire State Realty is 1.59 times less risky than Logitech International. It trades about 0.13 of its potential returns per unit of risk. Logitech International SA is currently generating about 0.03 per unit of risk. If you would invest 1,060 in Empire State Realty on September 1, 2024 and sell it today you would earn a total of 36.00 from holding Empire State Realty or generate 3.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Empire State Realty vs. Logitech International SA
Performance |
| Timeline |
| Empire State Realty |
| Logitech International |
Empire State and Logitech International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Empire State and Logitech International
The main advantage of trading using opposite Empire State and Logitech International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Empire State 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.| Empire State vs. Paramount Group | Empire State vs. Hudson Pacific Properties | Empire State vs. Equity Commonwealth | Empire State vs. Douglas Emmett |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |