Correlation Between Chocoladefabriken and Logitech International
Can any of the company-specific risk be diversified away by investing in both Chocoladefabriken 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 Chocoladefabriken and Logitech International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chocoladefabriken Lindt Spruengli and Logitech International SA, you can compare the effects of market volatilities on Chocoladefabriken 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 Chocoladefabriken with a short position of Logitech International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chocoladefabriken and Logitech International.
Diversification Opportunities for Chocoladefabriken and Logitech International
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Chocoladefabriken and Logitech is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Chocoladefabriken Lindt Spruen and Logitech International SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logitech International and Chocoladefabriken 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 Chocoladefabriken Lindt Spruengli 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 Chocoladefabriken i.e., Chocoladefabriken and Logitech International go up and down completely randomly.
Pair Corralation between Chocoladefabriken and Logitech International
Assuming the 90 days trading horizon Chocoladefabriken is expected to generate 4.39 times less return on investment than Logitech International. But when comparing it to its historical volatility, Chocoladefabriken Lindt Spruengli is 1.81 times less risky than Logitech International. It trades about 0.02 of its potential returns per unit of risk. Logitech International SA is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 5,500 in Logitech International SA on September 12, 2024 and sell it today you would earn a total of 1,938 from holding Logitech International SA or generate 35.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chocoladefabriken Lindt Spruen vs. Logitech International SA
Performance |
| Timeline |
| Chocoladefabriken Lindt |
| Logitech International |
Chocoladefabriken and Logitech International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chocoladefabriken and Logitech International
The main advantage of trading using opposite Chocoladefabriken and Logitech International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chocoladefabriken 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.| Chocoladefabriken vs. Chocoladefabriken Lindt Spruengli | Chocoladefabriken vs. Barry Callebaut AG | Chocoladefabriken vs. SPDR Dow Jones | Chocoladefabriken vs. Baloise Holding AG |
| 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |