Correlation Between Contextlogic and Sachem Capital

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

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

Diversification Opportunities for Contextlogic and Sachem Capital

0.51

Correlation Coefficient

Contextlogic  Sachem Capital

Very weak diversification

The 3 months correlation between Contextlogic and Sachem is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Contextlogic and Sachem Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sachem Capital Corp 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 Sachem Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sachem Capital Corp has no effect on the direction of Contextlogic i.e., Contextlogic and Sachem Capital go up and down completely randomly.

Pair Corralation between Contextlogic and Sachem Capital

Given the investment horizon of 90 days Contextlogic is expected to under-perform the Sachem Capital. In addition to that, Contextlogic is 1.11 times more volatile than Sachem Capital Corp. It trades about -0.01 of its total potential returns per unit of risk. Sachem Capital Corp is currently generating about 0.08 per unit of volatility. If you would invest  96.00  in Sachem Capital Corp on May 13, 2025 and sell it today you would earn a total of  17.00  from holding Sachem Capital Corp or generate 17.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	44.44%
Values	Daily Returns

Contextlogic  vs.  Sachem Capital Corp

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.

Sachem Capital Corp

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Sachem Capital Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady fundamental indicators, Sachem Capital demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Contextlogic and Sachem Capital

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

The idea behind Contextlogic and Sachem Capital Corp 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.