Correlation Between Contextlogic and TriSalus Life

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

By analyzing existing cross correlation between Contextlogic and TriSalus Life Sciences, you can compare the effects of market volatilities on Contextlogic and TriSalus Life 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 TriSalus Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contextlogic and TriSalus Life.

Diversification Opportunities for Contextlogic and TriSalus Life

-0.36

Correlation Coefficient

Contextlogic  TriSalus Life

Very good diversification

The 3 months correlation between Contextlogic and TriSalus is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Contextlogic and TriSalus Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TriSalus Life Sciences 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 TriSalus Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TriSalus Life Sciences has no effect on the direction of Contextlogic i.e., Contextlogic and TriSalus Life go up and down completely randomly.

Pair Corralation between Contextlogic and TriSalus Life

Given the investment horizon of 90 days Contextlogic is expected to generate 0.3 times more return on investment than TriSalus Life. However, Contextlogic is 3.35 times less risky than TriSalus Life. It trades about 0.14 of its potential returns per unit of risk. TriSalus Life Sciences is currently generating about -0.02 per unit of risk. If you would invest  588.00  in Contextlogic on October 10, 2024 and sell it today you would earn a total of  120.00  from holding Contextlogic or generate 20.41% return on investment over 90 days.

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

Contextlogic  vs.  TriSalus Life Sciences

Contextlogic

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Contextlogic are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile technical and fundamental indicators, Contextlogic exhibited solid returns over the last few months and may actually be approaching a breakup point.

TriSalus Life Sciences

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TriSalus Life Sciences has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's forward indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with Contextlogic and TriSalus Life

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

The idea behind Contextlogic and TriSalus Life Sciences 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.