Correlation Between NETGEAR and Logitech International
Can any of the company-specific risk be diversified away by investing in both NETGEAR 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 NETGEAR and Logitech International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NETGEAR and Logitech International SA, you can compare the effects of market volatilities on NETGEAR 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 NETGEAR with a short position of Logitech International. Check out your portfolio center. Please also check ongoing floating volatility patterns of NETGEAR and Logitech International.
Diversification Opportunities for NETGEAR and Logitech International
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between NETGEAR and Logitech is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding NETGEAR and Logitech International SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logitech International and NETGEAR 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 NETGEAR 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 NETGEAR i.e., NETGEAR and Logitech International go up and down completely randomly.
Pair Corralation between NETGEAR and Logitech International
Given the investment horizon of 90 days NETGEAR is expected to generate 1.57 times more return on investment than Logitech International. However, NETGEAR is 1.57 times more volatile than Logitech International SA. It trades about 0.06 of its potential returns per unit of risk. Logitech International SA is currently generating about 0.05 per unit of risk. If you would invest 1,275 in NETGEAR on April 30, 2025 and sell it today you would earn a total of 1,276 from holding NETGEAR or generate 100.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NETGEAR vs. Logitech International SA
Performance |
| Timeline |
| NETGEAR |
| Logitech International |
NETGEAR and Logitech International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NETGEAR and Logitech International
The main advantage of trading using opposite NETGEAR and Logitech International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NETGEAR 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.| NETGEAR vs. KVH Industries | NETGEAR vs. Comtech Telecommunications Corp | NETGEAR vs. EchoStar | NETGEAR vs. Copart Inc |
| 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |