Correlation Between Shoe Carnival and Contextlogic

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

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

Diversification Opportunities for Shoe Carnival and Contextlogic

0.27

Correlation Coefficient

Shoe Carnival  Contextlogic

Modest diversification

The 3 months correlation between Shoe and Contextlogic is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Shoe Carnival and Contextlogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contextlogic and Shoe Carnival 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 Shoe Carnival 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 Shoe Carnival i.e., Shoe Carnival and Contextlogic go up and down completely randomly.

Pair Corralation between Shoe Carnival and Contextlogic

Given the investment horizon of 90 days Shoe Carnival is expected to generate 0.6 times more return on investment than Contextlogic. However, Shoe Carnival is 1.66 times less risky than Contextlogic. It trades about 0.02 of its potential returns per unit of risk. Contextlogic is currently generating about -0.01 per unit of risk. If you would invest  1,929  in Shoe Carnival on May 13, 2025 and sell it today you would earn a total of  28.00  from holding Shoe Carnival or generate 1.45% return on investment over 90 days.

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

Shoe Carnival  vs.  Contextlogic

Shoe Carnival

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Shoe Carnival are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Shoe Carnival is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

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.

Pair Trading with Shoe Carnival and Contextlogic

The main advantage of trading using opposite Shoe Carnival and Contextlogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shoe Carnival 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 Shoe Carnival 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.