Correlation Between Cementos Pacasmayo and Contextlogic

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

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

Diversification Opportunities for Cementos Pacasmayo and Contextlogic

0.42

Correlation Coefficient

Cementos Pacasmayo  Contextlogic

Very weak diversification

The 3 months correlation between Cementos and Contextlogic is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Cementos Pacasmayo SAA and Contextlogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contextlogic and Cementos Pacasmayo 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 Cementos Pacasmayo SAA 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 Cementos Pacasmayo i.e., Cementos Pacasmayo and Contextlogic go up and down completely randomly.

Pair Corralation between Cementos Pacasmayo and Contextlogic

Given the investment horizon of 90 days Cementos Pacasmayo SAA is expected to generate 0.42 times more return on investment than Contextlogic. However, Cementos Pacasmayo SAA is 2.37 times less risky than Contextlogic. It trades about 0.13 of its potential returns per unit of risk. Contextlogic is currently generating about 0.02 per unit of risk. If you would invest  554.00  in Cementos Pacasmayo SAA on May 8, 2025 and sell it today you would earn a total of  80.00  from holding Cementos Pacasmayo SAA or generate 14.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	50.82%
Values	Daily Returns

Cementos Pacasmayo SAA  vs.  Contextlogic

Cementos Pacasmayo SAA

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Cementos Pacasmayo SAA are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Cementos Pacasmayo exhibited solid returns over the last few months and may actually be approaching a breakup point.

Contextlogic

Risk-Adjusted Performance

Weak

Over the last 90 days Contextlogic has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Contextlogic is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Cementos Pacasmayo and Contextlogic

The main advantage of trading using opposite Cementos Pacasmayo and Contextlogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cementos Pacasmayo 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 Cementos Pacasmayo SAA 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.