Correlation Between Dicks Sporting and Contextlogic
Can any of the company-specific risk be diversified away by investing in both Dicks Sporting and Contextlogic 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 Dicks Sporting and Contextlogic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dicks Sporting Goods and Contextlogic, you can compare the effects of market volatilities on Dicks Sporting and Contextlogic 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 Dicks Sporting with a short position of Contextlogic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dicks Sporting and Contextlogic.
Diversification Opportunities for Dicks Sporting and Contextlogic
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dicks and Contextlogic is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Dicks Sporting Goods and Contextlogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contextlogic and Dicks Sporting 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 Dicks Sporting Goods are associated (or correlated) with Contextlogic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contextlogic has no effect on the direction of Dicks Sporting i.e., Dicks Sporting and Contextlogic go up and down completely randomly.
Pair Corralation between Dicks Sporting and Contextlogic
Considering the 90-day investment horizon Dicks Sporting Goods is expected to under-perform the Contextlogic. In addition to that, Dicks Sporting is 1.04 times more volatile than Contextlogic. It trades about -0.07 of its total potential returns per unit of risk. Contextlogic is currently generating about 0.24 per unit of volatility. If you would invest 540.00 in Contextlogic on August 30, 2024 and sell it today you would earn a total of 171.00 from holding Contextlogic or generate 31.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dicks Sporting Goods vs. Contextlogic
Performance |
| Timeline |
| Dicks Sporting Goods |
| Contextlogic |
Dicks Sporting and Contextlogic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dicks Sporting and Contextlogic
The main advantage of trading using opposite Dicks Sporting and Contextlogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dicks Sporting position performs unexpectedly, Contextlogic 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 Contextlogic will offset losses from the drop in Contextlogic's long position.| Dicks Sporting vs. RH | Dicks Sporting vs. AutoZone | Dicks Sporting vs. Best Buy Co | Dicks Sporting vs. Ulta Beauty |
| Contextlogic vs. Univest Pennsylvania | Contextlogic vs. KeyCorp | Contextlogic vs. Lindblad Expeditions Holdings | Contextlogic vs. Aterian |
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.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |