Correlation Between Contextlogic and Chemours
Can any of the company-specific risk be diversified away by investing in both Contextlogic and Chemours 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 Chemours into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Contextlogic and Chemours Co, you can compare the effects of market volatilities on Contextlogic and Chemours 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 Chemours. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contextlogic and Chemours.
Diversification Opportunities for Contextlogic and Chemours
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Contextlogic and Chemours is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Contextlogic and Chemours Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chemours 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 Chemours. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chemours has no effect on the direction of Contextlogic i.e., Contextlogic and Chemours go up and down completely randomly.
Pair Corralation between Contextlogic and Chemours
Given the investment horizon of 90 days Contextlogic is expected to generate 3.93 times less return on investment than Chemours. But when comparing it to its historical volatility, Contextlogic is 1.36 times less risky than Chemours. It trades about 0.06 of its potential returns per unit of risk. Chemours Co is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,772 in Chemours Co on October 21, 2024 and sell it today you would earn a total of 168.00 from holding Chemours Co or generate 9.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Contextlogic vs. Chemours Co
Performance |
| Timeline |
| Contextlogic |
| Chemours |
Contextlogic and Chemours Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contextlogic and Chemours
The main advantage of trading using opposite Contextlogic and Chemours positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contextlogic position performs unexpectedly, Chemours 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 Chemours will offset losses from the drop in Chemours' long position.| Contextlogic vs. Chemours Co | Contextlogic vs. Arq Inc | Contextlogic vs. Codexis | Contextlogic vs. Village Super Market |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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