Correlation Between Logitech International and Super Micro
Can any of the company-specific risk be diversified away by investing in both Logitech International and Super Micro 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 Super Micro 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 Super Micro Computer, you can compare the effects of market volatilities on Logitech International and Super Micro 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 Super Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Logitech International and Super Micro.
Diversification Opportunities for Logitech International and Super Micro
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Logitech and Super is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Logitech International SA and Super Micro Computer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super Micro Computer 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 Super Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super Micro Computer has no effect on the direction of Logitech International i.e., Logitech International and Super Micro go up and down completely randomly.
Pair Corralation between Logitech International and Super Micro
Given the investment horizon of 90 days Logitech International SA is expected to generate 0.14 times more return on investment than Super Micro. However, Logitech International SA is 7.07 times less risky than Super Micro. It trades about -0.07 of its potential returns per unit of risk. Super Micro Computer is currently generating about -0.04 per unit of risk. If you would invest 8,372 in Logitech International SA on August 29, 2024 and sell it today you would lose (271.00) from holding Logitech International SA or give up 3.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Logitech International SA vs. Super Micro Computer
Performance |
| Timeline |
| Logitech International |
| Super Micro Computer |
Logitech International and Super Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Logitech International and Super Micro
The main advantage of trading using opposite Logitech International and Super Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Logitech International position performs unexpectedly, Super Micro 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 Super Micro will offset losses from the drop in Super Micro's long position.| Logitech International vs. Pure Storage | Logitech International vs. Seagate Technology PLC | Logitech International vs. HP Inc | Logitech International vs. Dell Technologies |
| Super Micro vs. D Wave Quantum | Super Micro vs. Rigetti Computing | Super Micro vs. Cricut Inc | Super Micro vs. Quantum Computing |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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