Correlation Between Logitech International and Schweizerische Nationalbank

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

Diversification Opportunities for Logitech International and Schweizerische Nationalbank

0.14

Correlation Coefficient

Logitech International  Schweizerische Nationalbank

Average diversification

The 3 months correlation between Logitech and Schweizerische is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Logitech International SA and Schweizerische Nationalbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schweizerische Nationalbank 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 Schweizerische Nationalbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schweizerische Nationalbank has no effect on the direction of Logitech International i.e., Logitech International and Schweizerische Nationalbank go up and down completely randomly.

Pair Corralation between Logitech International and Schweizerische Nationalbank

Assuming the 90 days trading horizon Logitech International SA is expected to generate 1.1 times more return on investment than Schweizerische Nationalbank. However, Logitech International is 1.1 times more volatile than Schweizerische Nationalbank. It trades about 0.18 of its potential returns per unit of risk. Schweizerische Nationalbank is currently generating about 0.01 per unit of risk. If you would invest  6,316  in Logitech International SA on April 24, 2025 and sell it today you would earn a total of  1,386  from holding Logitech International SA or generate 21.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Logitech International SA  vs.  Schweizerische Nationalbank

Logitech International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Logitech International SA are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Logitech International showed solid returns over the last few months and may actually be approaching a breakup point.

Schweizerische Nationalbank

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Logitech International and Schweizerische Nationalbank

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

The idea behind Logitech International SA and Schweizerische Nationalbank 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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.