Correlation Between U Haul and Contextlogic

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

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

Diversification Opportunities for U Haul and Contextlogic

-0.51

Correlation Coefficient

U Haul  Contextlogic

Excellent diversification

The 3 months correlation between UHAL and Contextlogic is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding U Haul Holding and Contextlogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contextlogic and U Haul 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 U Haul Holding 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 U Haul i.e., U Haul and Contextlogic go up and down completely randomly.

Pair Corralation between U Haul and Contextlogic

Given the investment horizon of 90 days U Haul Holding is expected to under-perform the Contextlogic. But the stock apears to be less risky and, when comparing its historical volatility, U Haul Holding is 2.66 times less risky than Contextlogic. The stock trades about -0.1 of its potential returns per unit of risk. The Contextlogic is currently generating about 0.06 of returns per unit of risk over similar time horizon. 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	Very Weak
Accuracy	57.38%
Values	Daily Returns

U Haul Holding  vs.  Contextlogic

U Haul Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days U Haul Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

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 unfluctuating technical and fundamental indicators, Contextlogic exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with U Haul and Contextlogic

The main advantage of trading using opposite U Haul and Contextlogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Haul 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 U Haul Holding 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.