Correlation Between Canaan and Logitech International

Can any of the company-specific risk be diversified away by investing in both Canaan and Logitech 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 Canaan and Logitech International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Canaan Inc and Logitech International SA, you can compare the effects of market volatilities on Canaan and Logitech 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 Canaan with a short position of Logitech International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canaan and Logitech International.

Diversification Opportunities for Canaan and Logitech International

0.46

Correlation Coefficient

Canaan  Logitech International

Very weak diversification

The 3 months correlation between Canaan and Logitech is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Canaan Inc and Logitech International SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logitech International and Canaan 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 Canaan Inc are associated (or correlated) with Logitech International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logitech International has no effect on the direction of Canaan i.e., Canaan and Logitech International go up and down completely randomly.

Pair Corralation between Canaan and Logitech International

Considering the 90-day investment horizon Canaan Inc is expected to generate 5.75 times more return on investment than Logitech International. However, Canaan is 5.75 times more volatile than Logitech International SA. It trades about 0.16 of its potential returns per unit of risk. Logitech International SA is currently generating about 0.23 per unit of risk. If you would invest  70.00  in Canaan Inc on July 9, 2025 and sell it today you would earn a total of  62.00  from holding Canaan Inc or generate 88.57% return on investment over 90 days.

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

Canaan Inc  vs.  Logitech International SA

Canaan Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Canaan Inc are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Canaan displayed solid returns over the last few months and may actually be approaching a breakup point.

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. Despite fairly fragile technical and fundamental indicators, Logitech International demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Canaan and Logitech International

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

The idea behind Canaan Inc and Logitech International SA 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.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.