Correlation Between Contextlogic and Allient

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

By analyzing existing cross correlation between Contextlogic and Allient, you can compare the effects of market volatilities on Contextlogic and Allient 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 Allient. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contextlogic and Allient.

Diversification Opportunities for Contextlogic and Allient

0.42

Correlation Coefficient

Contextlogic  Allient

Very weak diversification

The 3 months correlation between Contextlogic and Allient is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Contextlogic and Allient in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allient 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 Allient. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allient has no effect on the direction of Contextlogic i.e., Contextlogic and Allient go up and down completely randomly.

Pair Corralation between Contextlogic and Allient

Given the investment horizon of 90 days Contextlogic is expected to generate 4.31 times less return on investment than Allient. In addition to that, Contextlogic is 1.08 times more volatile than Allient. It trades about 0.07 of its total potential returns per unit of risk. Allient is currently generating about 0.33 per unit of volatility. If you would invest  2,030  in Allient on April 20, 2025 and sell it today you would earn a total of  1,952  from holding Allient or generate 96.16% return on investment over 90 days.

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

Contextlogic  vs.  Allient

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.

Allient

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Allient are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal basic indicators, Allient unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Contextlogic and Allient

The main advantage of trading using opposite Contextlogic and Allient positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contextlogic position performs unexpectedly, Allient 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 Allient will offset losses from the drop in Allient's long position.

The idea behind Contextlogic and Allient 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.