Correlation Between STRC Old and Logitech International
Can any of the company-specific risk be diversified away by investing in both STRC Old 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 STRC Old and Logitech International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STRC Old and Logitech International SA, you can compare the effects of market volatilities on STRC Old 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 STRC Old with a short position of Logitech International. Check out your portfolio center. Please also check ongoing floating volatility patterns of STRC Old and Logitech International.
Diversification Opportunities for STRC Old and Logitech International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between STRC and Logitech is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding STRC Old and Logitech International SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logitech International and STRC Old 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 STRC Old 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 STRC Old i.e., STRC Old and Logitech International go up and down completely randomly.
Pair Corralation between STRC Old and Logitech International
If you would invest 5,224 in Logitech International SA on November 9, 2024 and sell it today you would earn a total of 4,718 from holding Logitech International SA or generate 90.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
STRC Old vs. Logitech International SA
Performance |
| Timeline |
| STRC Old |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Logitech International |
STRC Old and Logitech International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STRC Old and Logitech International
The main advantage of trading using opposite STRC Old and Logitech International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STRC Old 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.The idea behind STRC Old and Logitech International SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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