Correlation Between BlueScope Steel and Contextlogic
Can any of the company-specific risk be diversified away by investing in both BlueScope Steel 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 BlueScope Steel and Contextlogic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BlueScope Steel Ltd and Contextlogic, you can compare the effects of market volatilities on BlueScope Steel 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 BlueScope Steel with a short position of Contextlogic. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlueScope Steel and Contextlogic.
Diversification Opportunities for BlueScope Steel and Contextlogic
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BlueScope and Contextlogic is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding BlueScope Steel Ltd and Contextlogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contextlogic and BlueScope Steel 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 BlueScope Steel Ltd 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 BlueScope Steel i.e., BlueScope Steel and Contextlogic go up and down completely randomly.
Pair Corralation between BlueScope Steel and Contextlogic
Assuming the 90 days horizon BlueScope Steel Ltd is expected to generate 0.49 times more return on investment than Contextlogic. However, BlueScope Steel Ltd is 2.05 times less risky than Contextlogic. It trades about 0.0 of its potential returns per unit of risk. Contextlogic is currently generating about -0.08 per unit of risk. If you would invest 7,687 in BlueScope Steel Ltd on May 26, 2025 and sell it today you would lose (102.00) from holding BlueScope Steel Ltd or give up 1.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 30.16% |
| Values | Daily Returns |
BlueScope Steel Ltd vs. Contextlogic
Performance |
| Timeline |
| BlueScope Steel |
| Contextlogic |
Risk-Adjusted Performance
Weakest
Weak | Strong |
BlueScope Steel and Contextlogic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BlueScope Steel and Contextlogic
The main advantage of trading using opposite BlueScope Steel and Contextlogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlueScope Steel 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.| BlueScope Steel vs. ArcelorMittal SA | BlueScope Steel vs. Acerinox SA ADR | BlueScope Steel vs. Aperam PK | BlueScope Steel vs. Algoma Steel Group |
| Contextlogic vs. TPG Inc | Contextlogic vs. SLR Investment Corp | Contextlogic vs. CDW Corp | Contextlogic vs. BlackRock |
Check out your portfolio center.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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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