Correlation Between Logitech International and CleanTech Lithium

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

Diversification Opportunities for Logitech International and CleanTech Lithium

-0.13

Correlation Coefficient

Logitech International  CleanTech Lithium

Good diversification

The 3 months correlation between Logitech and CleanTech is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Logitech International SA and CleanTech Lithium plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CleanTech Lithium plc 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 CleanTech Lithium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CleanTech Lithium plc has no effect on the direction of Logitech International i.e., Logitech International and CleanTech Lithium go up and down completely randomly.

Pair Corralation between Logitech International and CleanTech Lithium

Assuming the 90 days trading horizon Logitech International SA is expected to under-perform the CleanTech Lithium. But the stock apears to be less risky and, when comparing its historical volatility, Logitech International SA is 2.31 times less risky than CleanTech Lithium. The stock trades about -0.1 of its potential returns per unit of risk. The CleanTech Lithium plc is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  495.00  in CleanTech Lithium plc on October 8, 2025 and sell it today you would earn a total of  255.00  from holding CleanTech Lithium plc or generate 51.52% return on investment over 90 days.

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

Logitech International SA  vs.  CleanTech Lithium plc

Logitech International

Risk-Adjusted Performance

Weakest

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 latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

CleanTech Lithium plc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CleanTech Lithium plc are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, CleanTech Lithium exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Logitech International and CleanTech Lithium

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

The idea behind Logitech International SA and CleanTech Lithium plc 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.