Correlation Between Contextlogic and JD Sports

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

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

Diversification Opportunities for Contextlogic and JD Sports

0.47

Correlation Coefficient

Contextlogic  JD Sports

Very weak diversification

The 3 months correlation between Contextlogic and JDSPY is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Contextlogic and JD Sports Fashion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD Sports Fashion 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 JD Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JD Sports Fashion has no effect on the direction of Contextlogic i.e., Contextlogic and JD Sports go up and down completely randomly.

Pair Corralation between Contextlogic and JD Sports

Given the investment horizon of 90 days Contextlogic is expected to under-perform the JD Sports. In addition to that, Contextlogic is 1.36 times more volatile than JD Sports Fashion. It trades about -0.08 of its total potential returns per unit of risk. JD Sports Fashion is currently generating about 0.05 per unit of volatility. If you would invest  113.00  in JD Sports Fashion on May 25, 2025 and sell it today you would earn a total of  8.00  from holding JD Sports Fashion or generate 7.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	30.65%
Values	Daily Returns

Contextlogic  vs.  JD Sports Fashion

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 unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

JD Sports Fashion

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in JD Sports Fashion are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting basic indicators, JD Sports may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Contextlogic and JD Sports

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

The idea behind Contextlogic and JD Sports Fashion 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..