Correlation Between Marine Products and Contextlogic
Can any of the company-specific risk be diversified away by investing in both Marine Products 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 Marine Products and Contextlogic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marine Products and Contextlogic, you can compare the effects of market volatilities on Marine Products 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 Marine Products with a short position of Contextlogic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marine Products and Contextlogic.
Diversification Opportunities for Marine Products and Contextlogic
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Marine and Contextlogic is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Marine Products and Contextlogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contextlogic and Marine Products 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 Marine Products 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 Marine Products i.e., Marine Products and Contextlogic go up and down completely randomly.
Pair Corralation between Marine Products and Contextlogic
Considering the 90-day investment horizon Marine Products is expected to generate 0.47 times more return on investment than Contextlogic. However, Marine Products is 2.13 times less risky than Contextlogic. It trades about -0.01 of its potential returns per unit of risk. Contextlogic is currently generating about -0.02 per unit of risk. If you would invest 1,171 in Marine Products on October 28, 2024 and sell it today you would lose (258.00) from holding Marine Products or give up 22.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marine Products vs. Contextlogic
Performance |
| Timeline |
| Marine Products |
| Contextlogic |
Marine Products and Contextlogic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marine Products and Contextlogic
The main advantage of trading using opposite Marine Products and Contextlogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marine Products 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.| Marine Products vs. Thor Industries | Marine Products vs. BRP Inc | Marine Products vs. Brunswick | Marine Products vs. EZGO Technologies |
| Contextlogic vs. SEI Investments | Contextlogic vs. BJs Restaurants | Contextlogic vs. Ameriprise Financial | Contextlogic vs. Apogee Therapeutics, Common |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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