Correlation Between Logitech International and Wisekey International

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

Diversification Opportunities for Logitech International and Wisekey International

0.56

Correlation Coefficient

Logitech International  Wisekey International

Very weak diversification

The 3 months correlation between Logitech and Wisekey is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Logitech International SA and Wisekey International Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wisekey International 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 Wisekey International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wisekey International has no effect on the direction of Logitech International i.e., Logitech International and Wisekey International go up and down completely randomly.

Pair Corralation between Logitech International and Wisekey International

Assuming the 90 days trading horizon Logitech International is expected to generate 2.25 times less return on investment than Wisekey International. But when comparing it to its historical volatility, Logitech International SA is 2.98 times less risky than Wisekey International. It trades about 0.23 of its potential returns per unit of risk. Wisekey International Holding is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  581.00  in Wisekey International Holding on April 22, 2025 and sell it today you would earn a total of  400.00  from holding Wisekey International Holding or generate 68.85% return on investment over 90 days.

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

Logitech International SA  vs.  Wisekey International Holding

Logitech International

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Logitech International SA are ranked lower than 18 (%) 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.

Wisekey International

Risk-Adjusted Performance

Good

Over the last 90 days Wisekey International Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly weak basic indicators, Wisekey International showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Logitech International and Wisekey International

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

The idea behind Logitech International SA and Wisekey International Holding 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.