Correlation Between Nathans Famous and Contextlogic
Can any of the company-specific risk be diversified away by investing in both Nathans Famous 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 Nathans Famous and Contextlogic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nathans Famous and Contextlogic, you can compare the effects of market volatilities on Nathans Famous 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 Nathans Famous with a short position of Contextlogic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nathans Famous and Contextlogic.
Diversification Opportunities for Nathans Famous and Contextlogic
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nathans and Contextlogic is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Nathans Famous and Contextlogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contextlogic and Nathans Famous 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 Nathans Famous 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 Nathans Famous i.e., Nathans Famous and Contextlogic go up and down completely randomly.
Pair Corralation between Nathans Famous and Contextlogic
Given the investment horizon of 90 days Nathans Famous is expected to generate 1.0 times more return on investment than Contextlogic. However, Nathans Famous is 1.0 times more volatile than Contextlogic. It trades about 0.01 of its potential returns per unit of risk. Contextlogic is currently generating about -1.14 per unit of risk. If you would invest 11,346 in Nathans Famous on April 13, 2025 and sell it today you would earn a total of 1.00 from holding Nathans Famous or generate 0.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 33.33% |
| Values | Daily Returns |
Nathans Famous vs. Contextlogic
Performance |
| Timeline |
| Nathans Famous |
| Contextlogic |
Nathans Famous and Contextlogic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nathans Famous and Contextlogic
The main advantage of trading using opposite Nathans Famous and Contextlogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nathans Famous 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.| Nathans Famous vs. Chipotle Mexican Grill | Nathans Famous vs. Dutch Bros | Nathans Famous vs. Dominos Pizza Common | Nathans Famous vs. Yum Brands |
| Contextlogic vs. ANTA Sports Products | Contextlogic vs. Universal Display | Contextlogic vs. GMO Internet | Contextlogic vs. Playtika Holding Corp |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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