Correlation Between Contextlogic and Solid Power
Can any of the company-specific risk be diversified away by investing in both Contextlogic and Solid Power 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 Solid Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Contextlogic and Solid Power, you can compare the effects of market volatilities on Contextlogic and Solid Power 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 Solid Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contextlogic and Solid Power.
Diversification Opportunities for Contextlogic and Solid Power
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Contextlogic and Solid is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Contextlogic and Solid Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solid Power 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 Solid Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solid Power has no effect on the direction of Contextlogic i.e., Contextlogic and Solid Power go up and down completely randomly.
Pair Corralation between Contextlogic and Solid Power
Given the investment horizon of 90 days Contextlogic is expected to generate 6.63 times less return on investment than Solid Power. But when comparing it to its historical volatility, Contextlogic is 1.64 times less risky than Solid Power. It trades about 0.07 of its potential returns per unit of risk. Solid Power is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 102.00 in Solid Power on April 10, 2025 and sell it today you would earn a total of 156.00 from holding Solid Power or generate 152.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 81.97% |
| Values | Daily Returns |
Contextlogic vs. Solid Power
Performance |
| Timeline |
| Contextlogic |
| Solid Power |
Contextlogic and Solid Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contextlogic and Solid Power
The main advantage of trading using opposite Contextlogic and Solid Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contextlogic position performs unexpectedly, Solid Power 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 Solid Power will offset losses from the drop in Solid Power's long position.| Contextlogic vs. Corning Incorporated | Contextlogic vs. American Airlines Group | Contextlogic vs. Nok Airlines Public | Contextlogic vs. BlueScope Steel Ltd |
| Solid Power vs. Delta Air Lines | Solid Power vs. The Cheesecake Factory | Solid Power vs. CleanTech Lithium Plc | Solid Power vs. United Airlines Holdings |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |