Correlation Between Ihuman and Contextlogic
Can any of the company-specific risk be diversified away by investing in both Ihuman 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 Ihuman and Contextlogic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ihuman Inc and Contextlogic, you can compare the effects of market volatilities on Ihuman 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 Ihuman with a short position of Contextlogic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihuman and Contextlogic.
Diversification Opportunities for Ihuman and Contextlogic
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ihuman and Contextlogic is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Ihuman Inc and Contextlogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contextlogic and Ihuman 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 Ihuman Inc 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 Ihuman i.e., Ihuman and Contextlogic go up and down completely randomly.
Pair Corralation between Ihuman and Contextlogic
Allowing for the 90-day total investment horizon Ihuman is expected to generate 40.6 times less return on investment than Contextlogic. In addition to that, Ihuman is 1.42 times more volatile than Contextlogic. It trades about 0.0 of its total potential returns per unit of risk. Contextlogic is currently generating about 0.13 per unit of volatility. If you would invest 703.00 in Contextlogic on November 1, 2024 and sell it today you would earn a total of 39.00 from holding Contextlogic or generate 5.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ihuman Inc vs. Contextlogic
Performance |
| Timeline |
| Ihuman Inc |
| Contextlogic |
Ihuman and Contextlogic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ihuman and Contextlogic
The main advantage of trading using opposite Ihuman and Contextlogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ihuman 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.| Ihuman vs. Boqii Holding Limited | Ihuman vs. Lixiang Education Holding | Ihuman vs. Huize Holding | Ihuman vs. Kuke Music Holding |
| Contextlogic vs. Nasdaq Inc | Contextlogic vs. Edgewell Personal Care | Contextlogic vs. Q2 Holdings | Contextlogic vs. Pinterest |
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 CEOs Directory module to screen CEOs from public companies around the world.
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