Correlation Between Logitech International and Identiv
Can any of the company-specific risk be diversified away by investing in both Logitech International and Identiv 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 Identiv 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 Identiv, you can compare the effects of market volatilities on Logitech International and Identiv 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 Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Logitech International and Identiv.
Diversification Opportunities for Logitech International and Identiv
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Logitech and Identiv is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Logitech International SA and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv 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 Identiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Identiv has no effect on the direction of Logitech International i.e., Logitech International and Identiv go up and down completely randomly.
Pair Corralation between Logitech International and Identiv
Given the investment horizon of 90 days Logitech International SA is expected to generate 0.47 times more return on investment than Identiv. However, Logitech International SA is 2.13 times less risky than Identiv. It trades about 0.0 of its potential returns per unit of risk. Identiv is currently generating about -0.11 per unit of risk. If you would invest 8,994 in Logitech International SA on December 29, 2023 and sell it today you would lose (33.84) from holding Logitech International SA or give up 0.38% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.65% |
Values | Daily Returns |
Logitech International SA vs. Identiv
Performance |
Timeline |
Logitech International |
Identiv |
Logitech International and Identiv Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Logitech International and Identiv
The main advantage of trading using opposite Logitech International and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Logitech International position performs unexpectedly, Identiv 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 Identiv will offset losses from the drop in Identiv's long position.Logitech International vs. Desktop Metal | Logitech International vs. Fabrinet | Logitech International vs. Kimball Electronics | Logitech International vs. Knowles Cor |
Identiv vs. Empire Global Gaming | Identiv vs. Wicket Gaming AB | Identiv vs. Stepan Company | Identiv vs. Braskem SA Class |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |