Correlation Between Nano Dimension and Logitech International

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

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

Diversification Opportunities for Nano Dimension and Logitech International

0.03

Correlation Coefficient

Nano Dimension  Logitech International

Significant diversification

The 3 months correlation between Nano and Logitech is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Nano Dimension and Logitech International SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logitech International and Nano Dimension 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 Nano Dimension 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 Nano Dimension i.e., Nano Dimension and Logitech International go up and down completely randomly.

Pair Corralation between Nano Dimension and Logitech International

Given the investment horizon of 90 days Nano Dimension is expected to under-perform the Logitech International. In addition to that, Nano Dimension is 1.5 times more volatile than Logitech International SA. It trades about 0.0 of its total potential returns per unit of risk. Logitech International SA is currently generating about 0.21 per unit of volatility. If you would invest  7,715  in Logitech International SA on April 24, 2025 and sell it today you would earn a total of  1,863  from holding Logitech International SA or generate 24.15% return on investment over 90 days.

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

Nano Dimension  vs.  Logitech International SA

Nano Dimension

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nano Dimension has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Nano Dimension is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

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 16 (%) 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 Nano Dimension and Logitech International

The main advantage of trading using opposite Nano Dimension and Logitech International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nano Dimension 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 Nano Dimension 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.