Correlation Between Haleon Plc and Contextlogic
Can any of the company-specific risk be diversified away by investing in both Haleon Plc 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 Haleon Plc and Contextlogic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haleon plc and Contextlogic, you can compare the effects of market volatilities on Haleon Plc 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 Haleon Plc with a short position of Contextlogic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haleon Plc and Contextlogic.
Diversification Opportunities for Haleon Plc and Contextlogic
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Haleon and Contextlogic is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Haleon plc and Contextlogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contextlogic and Haleon Plc 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 Haleon plc 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 Haleon Plc i.e., Haleon Plc and Contextlogic go up and down completely randomly.
Pair Corralation between Haleon Plc and Contextlogic
Considering the 90-day investment horizon Haleon plc is expected to under-perform the Contextlogic. But the stock apears to be less risky and, when comparing its historical volatility, Haleon plc is 4.1 times less risky than Contextlogic. The stock trades about -0.14 of its potential returns per unit of risk. The Contextlogic is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 722.00 in Contextlogic on June 7, 2025 and sell it today you would earn a total of 17.00 from holding Contextlogic or generate 2.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 16.13% |
| Values | Daily Returns |
Haleon plc vs. Contextlogic
Performance |
| Timeline |
| Haleon plc |
| Contextlogic |
Risk-Adjusted Performance
Mild
Weak | Strong |
Haleon Plc and Contextlogic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haleon Plc and Contextlogic
The main advantage of trading using opposite Haleon Plc and Contextlogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haleon Plc 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.| Haleon Plc vs. Viatris | Haleon Plc vs. Takeda Pharmaceutical Co | Haleon Plc vs. Elanco Animal Health | Haleon Plc vs. Zoetis Inc |
| Contextlogic vs. Kenon Holdings | Contextlogic vs. One Gas | Contextlogic vs. Meiwu Technology Co | Contextlogic vs. NETGEAR |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |