Correlation Between New Pacific and Logitech International
Can any of the company-specific risk be diversified away by investing in both New Pacific 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 New Pacific and Logitech International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Pacific Metals and Logitech International SA, you can compare the effects of market volatilities on New Pacific 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 New Pacific with a short position of Logitech International. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Pacific and Logitech International.
Diversification Opportunities for New Pacific and Logitech International
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between New and Logitech is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding New Pacific Metals and Logitech International SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logitech International and New Pacific 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 New Pacific Metals 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 New Pacific i.e., New Pacific and Logitech International go up and down completely randomly.
Pair Corralation between New Pacific and Logitech International
Given the investment horizon of 90 days New Pacific Metals is expected to generate 2.71 times more return on investment than Logitech International. However, New Pacific is 2.71 times more volatile than Logitech International SA. It trades about 0.1 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 143.00 in New Pacific Metals on June 1, 2025 and sell it today you would earn a total of 32.00 from holding New Pacific Metals or generate 22.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
New Pacific Metals vs. Logitech International SA
Performance |
| Timeline |
| New Pacific Metals |
| Logitech International |
New Pacific and Logitech International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Pacific and Logitech International
The main advantage of trading using opposite New Pacific and Logitech International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Pacific 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.| New Pacific vs. Vox Royalty Corp | New Pacific vs. Metalla Royalty Streaming | New Pacific vs. Silver Range Resources | New Pacific vs. Harmonic |
| 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.
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