Correlation Between Logitech International and Chegg
Can any of the company-specific risk be diversified away by investing in both Logitech International and Chegg 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 Chegg 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 Chegg Inc, you can compare the effects of market volatilities on Logitech International and Chegg 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 Chegg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Logitech International and Chegg.
Diversification Opportunities for Logitech International and Chegg
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Logitech and Chegg is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Logitech International SA and Chegg Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chegg Inc 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 Chegg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chegg Inc has no effect on the direction of Logitech International i.e., Logitech International and Chegg go up and down completely randomly.
Pair Corralation between Logitech International and Chegg
Given the investment horizon of 90 days Logitech International is expected to generate 1.03 times less return on investment than Chegg. But when comparing it to its historical volatility, Logitech International SA is 4.31 times less risky than Chegg. It trades about 0.23 of its potential returns per unit of risk. Chegg Inc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 156.00 in Chegg Inc on June 10, 2025 and sell it today you would earn a total of 15.00 from holding Chegg Inc or generate 9.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Logitech International SA vs. Chegg Inc
Performance |
| Timeline |
| Logitech International |
| Chegg Inc |
Logitech International and Chegg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Logitech International and Chegg
The main advantage of trading using opposite Logitech International and Chegg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Logitech International position performs unexpectedly, Chegg 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 Chegg will offset losses from the drop in Chegg's long position.| Logitech International vs. Chegg Inc | Logitech International vs. Corsair Gaming | Logitech International vs. Dell Technologies | Logitech International vs. NetApp Inc |
| Chegg vs. Coursera | Chegg vs. TAL Education Group | Chegg vs. New Oriental Education | Chegg vs. Gaotu Techedu DRC |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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