Correlation Between Contextlogic and 26441CAP0

Can any of the company-specific risk be diversified away by investing in both Contextlogic and 26441CAP0 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 26441CAP0 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Contextlogic and DUKE ENERGY P, you can compare the effects of market volatilities on Contextlogic and 26441CAP0 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 26441CAP0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contextlogic and 26441CAP0.

Diversification Opportunities for Contextlogic and 26441CAP0

-0.32

Correlation Coefficient

Contextlogic  26441CAP0

Very good diversification

The 3 months correlation between Contextlogic and 26441CAP0 is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Contextlogic and DUKE ENERGY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DUKE ENERGY P 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 26441CAP0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DUKE ENERGY P has no effect on the direction of Contextlogic i.e., Contextlogic and 26441CAP0 go up and down completely randomly.

Pair Corralation between Contextlogic and 26441CAP0

Given the investment horizon of 90 days Contextlogic is expected to generate 2.16 times more return on investment than 26441CAP0. However, Contextlogic is 2.16 times more volatile than DUKE ENERGY P. It trades about 0.12 of its potential returns per unit of risk. DUKE ENERGY P is currently generating about -0.09 per unit of risk. If you would invest  590.00  in Contextlogic on October 11, 2024 and sell it today you would earn a total of  103.00  from holding Contextlogic or generate 17.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	93.55%
Values	Daily Returns

Contextlogic  vs.  DUKE ENERGY P

Contextlogic

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Contextlogic are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, Contextlogic exhibited solid returns over the last few months and may actually be approaching a breakup point.

DUKE ENERGY P

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days DUKE ENERGY P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for DUKE ENERGY P investors.

Pair Trading with Contextlogic and 26441CAP0

The main advantage of trading using opposite Contextlogic and 26441CAP0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contextlogic position performs unexpectedly, 26441CAP0 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 26441CAP0 will offset losses from the drop in 26441CAP0's long position.

The idea behind Contextlogic and DUKE ENERGY P 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.

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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.