Correlation Between Coupang LLC and Contextlogic
Can any of the company-specific risk be diversified away by investing in both Coupang LLC 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 Coupang LLC and Contextlogic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coupang LLC and Contextlogic, you can compare the effects of market volatilities on Coupang LLC 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 Coupang LLC with a short position of Contextlogic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coupang LLC and Contextlogic.
Diversification Opportunities for Coupang LLC and Contextlogic
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Coupang and Contextlogic is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Coupang LLC and Contextlogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contextlogic and Coupang LLC 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 Coupang LLC 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 Coupang LLC i.e., Coupang LLC and Contextlogic go up and down completely randomly.
Pair Corralation between Coupang LLC and Contextlogic
Given the investment horizon of 90 days Coupang LLC is expected to generate 0.57 times more return on investment than Contextlogic. However, Coupang LLC is 1.75 times less risky than Contextlogic. It trades about 0.27 of its potential returns per unit of risk. Contextlogic is currently generating about 0.05 per unit of risk. If you would invest 2,184 in Coupang LLC on April 9, 2025 and sell it today you would earn a total of 816.00 from holding Coupang LLC or generate 37.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 85.0% |
| Values | Daily Returns |
Coupang LLC vs. Contextlogic
Performance |
| Timeline |
| Coupang LLC |
| Contextlogic |
Coupang LLC and Contextlogic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coupang LLC and Contextlogic
The main advantage of trading using opposite Coupang LLC and Contextlogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coupang LLC 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.| Coupang LLC vs. Cardinal Health | Coupang LLC vs. Apogee Therapeutics, Common | Coupang LLC vs. Sun Life Financial | Coupang LLC vs. Spyre Therapeutics |
| Contextlogic vs. Lincoln Electric Holdings | Contextlogic vs. Church Dwight | Contextlogic vs. Mattel Inc | Contextlogic vs. Unilever PLC ADR |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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