Correlation Between Life Time and Contextlogic

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

By analyzing existing cross correlation between Life Time Group and Contextlogic, you can compare the effects of market volatilities on Life Time and Contextlogic 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 Life Time with a short position of Contextlogic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Life Time and Contextlogic.

Diversification Opportunities for Life Time and Contextlogic

0.06

Correlation Coefficient

Life Time  Contextlogic

Significant diversification

The 3 months correlation between Life and Contextlogic is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Life Time Group and Contextlogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contextlogic and Life Time 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 Life Time Group are associated (or correlated) with Contextlogic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contextlogic has no effect on the direction of Life Time i.e., Life Time and Contextlogic go up and down completely randomly.

Pair Corralation between Life Time and Contextlogic

Considering the 90-day investment horizon Life Time Group is expected to under-perform the Contextlogic. But the stock apears to be less risky and, when comparing its historical volatility, Life Time Group is 1.93 times less risky than Contextlogic. The stock trades about -0.02 of its potential returns per unit of risk. The Contextlogic is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  737.00  in Contextlogic on May 14, 2025 and sell it today you would earn a total of  2.00  from holding Contextlogic or generate 0.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	43.55%
Values	Daily Returns

Life Time Group  vs.  Contextlogic

Life Time Group

Risk-Adjusted Performance

Weakest

Over the last 90 days Life Time Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Life Time is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Contextlogic

Risk-Adjusted Performance

Weak

Over the last 90 days Contextlogic has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather unsteady technical and fundamental indicators, Contextlogic may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Life Time and Contextlogic

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

The idea behind Life Time Group and Contextlogic 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.