Correlation Between Logitech International and STRC Old
Can any of the company-specific risk be diversified away by investing in both Logitech International and STRC Old 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 STRC Old 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 STRC Old, you can compare the effects of market volatilities on Logitech International and STRC Old 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 STRC Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Logitech International and STRC Old.
Diversification Opportunities for Logitech International and STRC Old
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Logitech and STRC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Logitech International SA and STRC Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STRC Old 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 STRC Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STRC Old has no effect on the direction of Logitech International i.e., Logitech International and STRC Old go up and down completely randomly.
Pair Corralation between Logitech International and STRC Old
If you would invest 8,698 in Logitech International SA on November 9, 2024 and sell it today you would earn a total of 1,244 from holding Logitech International SA or generate 14.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Logitech International SA vs. STRC Old
Performance |
| Timeline |
| Logitech International |
| STRC Old |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Logitech International and STRC Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Logitech International and STRC Old
The main advantage of trading using opposite Logitech International and STRC Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Logitech International position performs unexpectedly, STRC Old 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 STRC Old will offset losses from the drop in STRC Old's long position.| Logitech International vs. Pure Storage | Logitech International vs. Seagate Technology PLC | Logitech International vs. HP Inc | Logitech International vs. Dell Technologies |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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