Correlation Between Contextlogic and Philip Morris

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

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

Diversification Opportunities for Contextlogic and Philip Morris

-0.2

Correlation Coefficient

Contextlogic  Philip Morris

Good diversification

The 3 months correlation between Contextlogic and Philip is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Contextlogic and Philip Morris International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Philip Morris Intern 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 Philip Morris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Philip Morris Intern has no effect on the direction of Contextlogic i.e., Contextlogic and Philip Morris go up and down completely randomly.

Pair Corralation between Contextlogic and Philip Morris

Given the investment horizon of 90 days Contextlogic is expected to generate 2.41 times more return on investment than Philip Morris. However, Contextlogic is 2.41 times more volatile than Philip Morris International. It trades about 0.06 of its potential returns per unit of risk. Philip Morris International is currently generating about -0.03 per unit of risk. If you would invest  699.00  in Contextlogic on May 2, 2025 and sell it today you would earn a total of  40.00  from holding Contextlogic or generate 5.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	57.38%
Values	Daily Returns

Contextlogic  vs.  Philip Morris International

Contextlogic

Risk-Adjusted Performance

Insignificant

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

Philip Morris Intern

Risk-Adjusted Performance

Very Weak

Over the last 90 days Philip Morris International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy primary indicators, Philip Morris is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Contextlogic and Philip Morris

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

The idea behind Contextlogic and Philip Morris International 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.