Correlation Between Celestica and Logitech International
Can any of the company-specific risk be diversified away by investing in both Celestica 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 Celestica and Logitech International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celestica and Logitech International SA, you can compare the effects of market volatilities on Celestica 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 Celestica with a short position of Logitech International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celestica and Logitech International.
Diversification Opportunities for Celestica and Logitech International
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Celestica and Logitech is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Celestica and Logitech International SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logitech International and Celestica 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 Celestica 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 Celestica i.e., Celestica and Logitech International go up and down completely randomly.
Pair Corralation between Celestica and Logitech International
Considering the 90-day investment horizon Celestica is expected to generate 2.34 times more return on investment than Logitech International. However, Celestica is 2.34 times more volatile than Logitech International SA. It trades about 0.24 of its potential returns per unit of risk. Logitech International SA is currently generating about 0.24 per unit of risk. If you would invest 11,664 in Celestica on June 1, 2025 and sell it today you would earn a total of 7,811 from holding Celestica or generate 66.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celestica vs. Logitech International SA
Performance |
| Timeline |
| Celestica |
| Logitech International |
Celestica and Logitech International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celestica and Logitech International
The main advantage of trading using opposite Celestica and Logitech International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celestica 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.| Celestica vs. Plexus Corp | Celestica vs. Benchmark Electronics | Celestica vs. Flex | Celestica vs. Jabil Circuit |
| Logitech International vs. Chegg Inc | Logitech International vs. Corsair Gaming | Logitech International vs. Dell Technologies | Logitech International vs. NetApp Inc |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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