Correlation Between Contextlogic and Precision Drilling
Can any of the company-specific risk be diversified away by investing in both Contextlogic and Precision Drilling 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 Contextlogic and Precision Drilling into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Contextlogic and Precision Drilling, you can compare the effects of market volatilities on Contextlogic and Precision Drilling 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 Contextlogic with a short position of Precision Drilling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contextlogic and Precision Drilling.
Diversification Opportunities for Contextlogic and Precision Drilling
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Contextlogic and Precision is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Contextlogic and Precision Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Precision Drilling and Contextlogic 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 Contextlogic are associated (or correlated) with Precision Drilling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Precision Drilling has no effect on the direction of Contextlogic i.e., Contextlogic and Precision Drilling go up and down completely randomly.
Pair Corralation between Contextlogic and Precision Drilling
Given the investment horizon of 90 days Contextlogic is expected to generate 1.08 times less return on investment than Precision Drilling. In addition to that, Contextlogic is 1.53 times more volatile than Precision Drilling. It trades about 0.09 of its total potential returns per unit of risk. Precision Drilling is currently generating about 0.14 per unit of volatility. If you would invest 4,186 in Precision Drilling on April 13, 2025 and sell it today you would earn a total of 879.00 from holding Precision Drilling or generate 21.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 78.69% |
| Values | Daily Returns |
Contextlogic vs. Precision Drilling
Performance |
| Timeline |
| Contextlogic |
| Precision Drilling |
Contextlogic and Precision Drilling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contextlogic and Precision Drilling
The main advantage of trading using opposite Contextlogic and Precision Drilling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contextlogic position performs unexpectedly, Precision Drilling 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 Precision Drilling will offset losses from the drop in Precision Drilling's long position.| Contextlogic vs. ANTA Sports Products | Contextlogic vs. Universal Display | Contextlogic vs. GMO Internet | Contextlogic vs. Playtika Holding Corp |
| Precision Drilling vs. Helmerich and Payne | Precision Drilling vs. Nabors Industries | Precision Drilling vs. Seadrill Limited | Precision Drilling vs. RPC Inc |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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