Correlation Between Nano Dimension and Logitech International
Can any of the company-specific risk be diversified away by investing in both Nano Dimension and Logitech International 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 Nano Dimension and Logitech International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nano Dimension and Logitech International SA, you can compare the effects of market volatilities on Nano Dimension and Logitech International 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 Nano Dimension with a short position of Logitech International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nano Dimension and Logitech International.
Diversification Opportunities for Nano Dimension and Logitech International
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nano and Logitech is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Nano Dimension and Logitech International SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logitech International and Nano Dimension 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 Nano Dimension are associated (or correlated) with Logitech International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logitech International has no effect on the direction of Nano Dimension i.e., Nano Dimension and Logitech International go up and down completely randomly.
Pair Corralation between Nano Dimension and Logitech International
Given the investment horizon of 90 days Nano Dimension is expected to generate 1.32 times more return on investment than Logitech International. However, Nano Dimension is 1.32 times more volatile than Logitech International SA. It trades about 0.0 of its potential returns per unit of risk. Logitech International SA is currently generating about -0.01 per unit of risk. If you would invest 217.00 in Nano Dimension on September 1, 2024 and sell it today you would lose (1.00) from holding Nano Dimension or give up 0.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nano Dimension vs. Logitech International SA
Performance |
| Timeline |
| Nano Dimension |
| Logitech International |
Nano Dimension and Logitech International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nano Dimension and Logitech International
The main advantage of trading using opposite Nano Dimension and Logitech International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nano Dimension position performs unexpectedly, Logitech International 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 Logitech International will offset losses from the drop in Logitech International's long position.| Nano Dimension vs. Desktop Metal | Nano Dimension vs. 3D Systems | Nano Dimension vs. Markforged Holding Corp | Nano Dimension vs. Stratasys |
| 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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