Correlation Between Logitech International and Meyer Burger
Can any of the company-specific risk be diversified away by investing in both Logitech International and Meyer Burger 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 Meyer Burger 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 Meyer Burger Tech, you can compare the effects of market volatilities on Logitech International and Meyer Burger 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 Meyer Burger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Logitech International and Meyer Burger.
Diversification Opportunities for Logitech International and Meyer Burger
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Logitech and Meyer is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Logitech International SA and Meyer Burger Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meyer Burger Tech 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 Meyer Burger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meyer Burger Tech has no effect on the direction of Logitech International i.e., Logitech International and Meyer Burger go up and down completely randomly.
Pair Corralation between Logitech International and Meyer Burger
Assuming the 90 days trading horizon Logitech International SA is expected to generate 0.1 times more return on investment than Meyer Burger. However, Logitech International SA is 9.99 times less risky than Meyer Burger. It trades about 0.0 of its potential returns per unit of risk. Meyer Burger Tech is currently generating about -0.11 per unit of risk. If you would invest 7,224 in Logitech International SA on August 29, 2024 and sell it today you would lose (26.00) from holding Logitech International SA or give up 0.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Logitech International SA vs. Meyer Burger Tech
Performance |
| Timeline |
| Logitech International |
| Meyer Burger Tech |
Logitech International and Meyer Burger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Logitech International and Meyer Burger
The main advantage of trading using opposite Logitech International and Meyer Burger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Logitech International position performs unexpectedly, Meyer Burger 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 Meyer Burger will offset losses from the drop in Meyer Burger'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 |
| Meyer Burger vs. Santhera Pharmaceuticals Holding | Meyer Burger vs. Newron Pharmaceuticals SpA | Meyer Burger vs. Basilea Pharmaceutica AG | Meyer Burger vs. Evolva Holding SA |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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