Correlation Between Swissquote Group and Logitech International
Can any of the company-specific risk be diversified away by investing in both Swissquote Group 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 Swissquote Group and Logitech International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swissquote Group Holding and Logitech International SA, you can compare the effects of market volatilities on Swissquote Group 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 Swissquote Group with a short position of Logitech International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swissquote Group and Logitech International.
Diversification Opportunities for Swissquote Group and Logitech International
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Swissquote and Logitech is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Swissquote Group Holding and Logitech International SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logitech International and Swissquote Group 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 Swissquote Group Holding 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 Swissquote Group i.e., Swissquote Group and Logitech International go up and down completely randomly.
Pair Corralation between Swissquote Group and Logitech International
Assuming the 90 days trading horizon Swissquote Group Holding is expected to generate 0.92 times more return on investment than Logitech International. However, Swissquote Group Holding is 1.08 times less risky than Logitech International. It trades about 0.11 of its potential returns per unit of risk. Logitech International SA is currently generating about 0.03 per unit of risk. If you would invest 13,633 in Swissquote Group Holding on September 3, 2024 and sell it today you would earn a total of 20,947 from holding Swissquote Group Holding or generate 153.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swissquote Group Holding vs. Logitech International SA
Performance |
| Timeline |
| Swissquote Group Holding |
| Logitech International |
Swissquote Group and Logitech International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swissquote Group and Logitech International
The main advantage of trading using opposite Swissquote Group and Logitech International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swissquote Group 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.| Swissquote Group vs. Logitech International SA | Swissquote Group vs. Swiss Life Holding | Swissquote Group vs. VAT Group AG | Swissquote Group vs. Partners Group Holding |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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