Correlation Between Logitech International and Perrot Duval

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

Diversification Opportunities for Logitech International and Perrot Duval

0.0

Correlation Coefficient

Logitech International  Perrot Duval

Pay attention - limited upside

The 3 months correlation between Logitech and Perrot is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Logitech International SA and Perrot Duval Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perrot Duval Holding 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 Perrot Duval. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perrot Duval Holding has no effect on the direction of Logitech International i.e., Logitech International and Perrot Duval go up and down completely randomly.

Pair Corralation between Logitech International and Perrot Duval

If you would invest  7,024  in Logitech International SA on September 6, 2025 and sell it today you would earn a total of  2,558  from holding Logitech International SA or generate 36.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Logitech International SA  vs.  Perrot Duval Holding

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 9 (%) 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.

Perrot Duval Holding

Risk-Adjusted Performance

Weakest

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

Pair Trading with Logitech International and Perrot Duval

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

The idea behind Logitech International SA and Perrot Duval 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.