Correlation Between Logitech International and Pure Storage
Can any of the company-specific risk be diversified away by investing in both Logitech International and Pure Storage 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 Logitech International and Pure Storage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Logitech International SA and Pure Storage, you can compare the effects of market volatilities on Logitech International and Pure Storage 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 Logitech International with a short position of Pure Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Logitech International and Pure Storage.
Diversification Opportunities for Logitech International and Pure Storage
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Logitech and Pure is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Logitech International SA and Pure Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pure Storage and Logitech International 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 Logitech International SA are associated (or correlated) with Pure Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pure Storage has no effect on the direction of Logitech International i.e., Logitech International and Pure Storage go up and down completely randomly.
Pair Corralation between Logitech International and Pure Storage
Given the investment horizon of 90 days Logitech International SA is expected to under-perform the Pure Storage. But the stock apears to be less risky and, when comparing its historical volatility, Logitech International SA is 1.26 times less risky than Pure Storage. The stock trades about -0.01 of its potential returns per unit of risk. The Pure Storage is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 5,005 in Pure Storage on September 1, 2024 and sell it today you would earn a total of 294.00 from holding Pure Storage or generate 5.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Logitech International SA vs. Pure Storage
Performance |
| Timeline |
| Logitech International |
| Pure Storage |
Logitech International and Pure Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Logitech International and Pure Storage
The main advantage of trading using opposite Logitech International and Pure Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Logitech International position performs unexpectedly, Pure Storage 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 Pure Storage will offset losses from the drop in Pure Storage's long position.| Logitech International vs. Pure Storage | Logitech International vs. Seagate Technology PLC | Logitech International vs. HP Inc | Logitech International vs. Dell Technologies |
| Pure Storage vs. Rigetti Computing | Pure Storage vs. D Wave Quantum | Pure Storage vs. IONQ Inc | Pure Storage vs. Desktop Metal |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |