Correlation Between Contextlogic and Fidelity National

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

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

Diversification Opportunities for Contextlogic and Fidelity National

0.38

Correlation Coefficient

Contextlogic  Fidelity National

Weak diversification

The 3 months correlation between Contextlogic and Fidelity is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Contextlogic and Fidelity National Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity National 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 Fidelity National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity National has no effect on the direction of Contextlogic i.e., Contextlogic and Fidelity National go up and down completely randomly.

Pair Corralation between Contextlogic and Fidelity National

Given the investment horizon of 90 days Contextlogic is expected to under-perform the Fidelity National. In addition to that, Contextlogic is 3.08 times more volatile than Fidelity National Financial. It trades about -0.02 of its total potential returns per unit of risk. Fidelity National Financial is currently generating about 0.12 per unit of volatility. If you would invest  5,313  in Fidelity National Financial on May 22, 2025 and sell it today you would earn a total of  634.00  from holding Fidelity National Financial or generate 11.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	34.43%
Values	Daily Returns

Contextlogic  vs.  Fidelity National Financial

Contextlogic

Risk-Adjusted Performance

Weakest

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 latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Fidelity National

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity National Financial are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Fidelity National may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Contextlogic and Fidelity National

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

The idea behind Contextlogic and Fidelity National Financial 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.

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 Global Correlations module to find global opportunities by holding instruments from different markets.