Correlation Between Global E and Contextlogic

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

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

Diversification Opportunities for Global E and Contextlogic

-0.52

Correlation Coefficient

Global E  Contextlogic

Excellent diversification

The 3 months correlation between Global and Contextlogic is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Global E Online and Contextlogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contextlogic and Global E 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 Global E Online 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 Global E i.e., Global E and Contextlogic go up and down completely randomly.

Pair Corralation between Global E and Contextlogic

Given the investment horizon of 90 days Global E is expected to generate 1.82 times less return on investment than Contextlogic. But when comparing it to its historical volatility, Global E Online is 1.11 times less risky than Contextlogic. It trades about 0.04 of its potential returns per unit of risk. Contextlogic is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  678.00  in Contextlogic on April 20, 2025 and sell it today you would earn a total of  61.00  from holding Contextlogic or generate 9.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	70.97%
Values	Daily Returns

Global E Online  vs.  Contextlogic

Global E Online

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Global E Online are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental drivers, Global E may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Contextlogic

Risk-Adjusted Performance

Modest

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

Pair Trading with Global E and Contextlogic

The main advantage of trading using opposite Global E and Contextlogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global E 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 Global E Online 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.