Correlation Between Contextlogic and Huaizhong Health

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

By analyzing existing cross correlation between Contextlogic and Huaizhong Health Group, you can compare the effects of market volatilities on Contextlogic and Huaizhong Health 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 Contextlogic with a short position of Huaizhong Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contextlogic and Huaizhong Health.

Diversification Opportunities for Contextlogic and Huaizhong Health

0.0

Correlation Coefficient

Contextlogic  Huaizhong Health

Pay attention - limited upside

The 3 months correlation between Contextlogic and Huaizhong is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Contextlogic and Huaizhong Health Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaizhong Health and Contextlogic 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 Contextlogic are associated (or correlated) with Huaizhong Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaizhong Health has no effect on the direction of Contextlogic i.e., Contextlogic and Huaizhong Health go up and down completely randomly.

Pair Corralation between Contextlogic and Huaizhong Health

If you would invest  680.00  in Contextlogic on October 26, 2024 and sell it today you would earn a total of  24.00  from holding Contextlogic or generate 3.53% return on investment over 90 days.

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

Contextlogic  vs.  Huaizhong Health Group

Contextlogic

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Contextlogic are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting technical and fundamental indicators, Contextlogic may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Huaizhong Health

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Huaizhong Health Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Huaizhong Health is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Contextlogic and Huaizhong Health

The main advantage of trading using opposite Contextlogic and Huaizhong Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contextlogic position performs unexpectedly, Huaizhong Health 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 Huaizhong Health will offset losses from the drop in Huaizhong Health's long position.

The idea behind Contextlogic and Huaizhong Health Group 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.

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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.