Correlation Between Hauppauge Digital and Logitech International

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Can any of the company-specific risk be diversified away by investing in both Hauppauge Digital 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 Hauppauge Digital and Logitech International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hauppauge Digital OTC and Logitech International SA, you can compare the effects of market volatilities on Hauppauge Digital 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 Hauppauge Digital with a short position of Logitech International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hauppauge Digital and Logitech International.

Diversification Opportunities for Hauppauge Digital and Logitech International

-0.59
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Hauppauge and Logitech is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Hauppauge Digital OTC and Logitech International SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logitech International and Hauppauge Digital 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 Hauppauge Digital OTC 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 Hauppauge Digital i.e., Hauppauge Digital and Logitech International go up and down completely randomly.

Pair Corralation between Hauppauge Digital and Logitech International

If you would invest  2.00  in Hauppauge Digital OTC on December 29, 2023 and sell it today you would earn a total of  0.00  from holding Hauppauge Digital OTC or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy4.55%
ValuesDaily Returns

Hauppauge Digital OTC  vs.  Logitech International SA

 Performance 
       Timeline  
Hauppauge Digital OTC 

Risk-Adjusted Performance

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Low
 
High
Very Weak
Over the last 90 days Hauppauge Digital OTC has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Hauppauge Digital is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.
Logitech International 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Logitech International SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, Logitech International is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Hauppauge Digital and Logitech International Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Hauppauge Digital and Logitech International

The main advantage of trading using opposite Hauppauge Digital and Logitech International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hauppauge Digital 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 Hauppauge Digital OTC 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.
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

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