Correlation Between Logitech International and PHOENIX N

Can any of the company-specific risk be diversified away by investing in both Logitech International and PHOENIX N 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 PHOENIX N 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 PHOENIX N AG, you can compare the effects of market volatilities on Logitech International and PHOENIX N 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 PHOENIX N. Check out your portfolio center. Please also check ongoing floating volatility patterns of Logitech International and PHOENIX N.

Diversification Opportunities for Logitech International and PHOENIX N

0.0

Correlation Coefficient

Logitech International  PHOENIX N

Pay attention - limited upside

The 3 months correlation between Logitech and PHOENIX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Logitech International SA and PHOENIX N AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHOENIX N AG 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 PHOENIX N. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHOENIX N AG has no effect on the direction of Logitech International i.e., Logitech International and PHOENIX N go up and down completely randomly.

Pair Corralation between Logitech International and PHOENIX N

If you would invest  0.00  in PHOENIX N AG on October 1, 2024 and sell it today you would earn a total of  0.00  from holding PHOENIX N AG or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Logitech International SA  vs.  PHOENIX N AG

Logitech International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Logitech International SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Logitech International is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

PHOENIX N AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PHOENIX N AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, PHOENIX N is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Logitech International and PHOENIX N

The main advantage of trading using opposite Logitech International and PHOENIX N positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Logitech International position performs unexpectedly, PHOENIX N 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 PHOENIX N will offset losses from the drop in PHOENIX N's long position.

The idea behind Logitech International SA and PHOENIX N AG 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.