Correlation Between Cembra Money and Logitech International

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

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

Diversification Opportunities for Cembra Money and Logitech International

-0.42

Correlation Coefficient

Cembra Money  Logitech International

Very good diversification

The 3 months correlation between Cembra and Logitech is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Cembra Money Bank and Logitech International SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logitech International and Cembra Money 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 Cembra Money Bank 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 Cembra Money i.e., Cembra Money and Logitech International go up and down completely randomly.

Pair Corralation between Cembra Money and Logitech International

Assuming the 90 days trading horizon Cembra Money Bank is expected to under-perform the Logitech International. In addition to that, Cembra Money is 1.08 times more volatile than Logitech International SA. It trades about -0.09 of its total potential returns per unit of risk. Logitech International SA is currently generating about 0.1 per unit of volatility. If you would invest  7,340  in Logitech International SA on May 15, 2025 and sell it today you would earn a total of  616.00  from holding Logitech International SA or generate 8.39% return on investment over 90 days.

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

Cembra Money Bank  vs.  Logitech International SA

Cembra Money Bank

Risk-Adjusted Performance

Weakest

Over the last 90 days Cembra Money Bank has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Logitech International

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Logitech International SA are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Logitech International may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Cembra Money and Logitech International

The main advantage of trading using opposite Cembra Money and Logitech International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cembra Money 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 Cembra Money Bank 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.

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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..