Correlation Between Logitech International and Basellandschaftliche
Can any of the company-specific risk be diversified away by investing in both Logitech International and Basellandschaftliche 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 Basellandschaftliche 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 Basellandschaftliche Kantonalbank, you can compare the effects of market volatilities on Logitech International and Basellandschaftliche 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 Basellandschaftliche. Check out your portfolio center. Please also check ongoing floating volatility patterns of Logitech International and Basellandschaftliche.
Diversification Opportunities for Logitech International and Basellandschaftliche
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Logitech and Basellandschaftliche is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Logitech International SA and Basellandschaftliche Kantonalb in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Basellandschaftliche 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 Basellandschaftliche. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Basellandschaftliche has no effect on the direction of Logitech International i.e., Logitech International and Basellandschaftliche go up and down completely randomly.
Pair Corralation between Logitech International and Basellandschaftliche
Assuming the 90 days trading horizon Logitech International SA is expected to under-perform the Basellandschaftliche. In addition to that, Logitech International is 4.02 times more volatile than Basellandschaftliche Kantonalbank. It trades about -0.1 of its total potential returns per unit of risk. Basellandschaftliche Kantonalbank is currently generating about 0.0 per unit of volatility. If you would invest 84,800 in Basellandschaftliche Kantonalbank on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Basellandschaftliche Kantonalbank or generate 0.0% 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. Basellandschaftliche Kantonalb
Performance |
| Timeline |
| Logitech International |
| Basellandschaftliche |
Logitech International and Basellandschaftliche Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Logitech International and Basellandschaftliche
The main advantage of trading using opposite Logitech International and Basellandschaftliche positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Logitech International position performs unexpectedly, Basellandschaftliche 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 Basellandschaftliche will offset losses from the drop in Basellandschaftliche's long position.| Logitech International vs. Geberit AG | Logitech International vs. Sika AG | Logitech International vs. Lonza Group AG | Logitech International vs. Swiss Life Holding |
| Basellandschaftliche vs. Basler Kantonalbank | Basellandschaftliche vs. Berner Kantonalbank AG | Basellandschaftliche vs. Luzerner Kantonalbank AG | Basellandschaftliche vs. Banque Cantonale |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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