Correlation Between Logitech International and St Galler
Can any of the company-specific risk be diversified away by investing in both Logitech International and St Galler 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 St Galler 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 St Galler Kantonalbank, you can compare the effects of market volatilities on Logitech International and St Galler 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 St Galler. Check out your portfolio center. Please also check ongoing floating volatility patterns of Logitech International and St Galler.
Diversification Opportunities for Logitech International and St Galler
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Logitech and SGKN is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Logitech International SA and St Galler Kantonalbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on St Galler Kantonalbank 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 St Galler. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of St Galler Kantonalbank has no effect on the direction of Logitech International i.e., Logitech International and St Galler go up and down completely randomly.
Pair Corralation between Logitech International and St Galler
Assuming the 90 days trading horizon Logitech International SA is expected to generate 2.18 times more return on investment than St Galler. However, Logitech International is 2.18 times more volatile than St Galler Kantonalbank. It trades about 0.01 of its potential returns per unit of risk. St Galler Kantonalbank is currently generating about -0.05 per unit of risk. If you would invest 6,974 in Logitech International SA on September 1, 2024 and sell it today you would earn a total of 176.00 from holding Logitech International SA or generate 2.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Logitech International SA vs. St Galler Kantonalbank
Performance |
| Timeline |
| Logitech International |
| St Galler Kantonalbank |
Logitech International and St Galler Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Logitech International and St Galler
The main advantage of trading using opposite Logitech International and St Galler positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Logitech International position performs unexpectedly, St Galler 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 St Galler will offset losses from the drop in St Galler'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 |
| St Galler vs. Swissquote Group Holding | St Galler vs. Banque Cantonale | St Galler vs. Barry Callebaut AG | St Galler vs. Vontobel Holding |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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