Correlation Between CapitaLand Investment and Contextlogic

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

By analyzing existing cross correlation between CapitaLand Investment Limited and Contextlogic, you can compare the effects of market volatilities on CapitaLand Investment 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 CapitaLand Investment with a short position of Contextlogic. Check out your portfolio center. Please also check ongoing floating volatility patterns of CapitaLand Investment and Contextlogic.

Diversification Opportunities for CapitaLand Investment and Contextlogic

0.34

Correlation Coefficient

CapitaLand Investment  Contextlogic

Weak diversification

The 3 months correlation between CapitaLand and Contextlogic is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding CapitaLand Investment Limited and Contextlogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contextlogic and CapitaLand Investment 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 CapitaLand Investment Limited 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 CapitaLand Investment i.e., CapitaLand Investment and Contextlogic go up and down completely randomly.

Pair Corralation between CapitaLand Investment and Contextlogic

Assuming the 90 days horizon CapitaLand Investment Limited is expected to generate 0.45 times more return on investment than Contextlogic. However, CapitaLand Investment Limited is 2.23 times less risky than Contextlogic. It trades about 0.16 of its potential returns per unit of risk. Contextlogic is currently generating about 0.06 per unit of risk. If you would invest  178.00  in CapitaLand Investment Limited on April 23, 2025 and sell it today you would earn a total of  31.00  from holding CapitaLand Investment Limited or generate 17.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	66.67%
Values	Daily Returns

CapitaLand Investment Limited  vs.  Contextlogic

CapitaLand Investment

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CapitaLand Investment Limited are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain essential indicators, CapitaLand Investment reported solid returns over the last few months and may actually be approaching a breakup point.

Contextlogic

Risk-Adjusted Performance

Insignificant

Over the last 90 days Contextlogic has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather unsteady technical and fundamental indicators, Contextlogic exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CapitaLand Investment and Contextlogic

The main advantage of trading using opposite CapitaLand Investment and Contextlogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CapitaLand Investment 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.

The idea behind CapitaLand Investment Limited and Contextlogic 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.