Correlation Between Visteon Corp and Contextlogic
Can any of the company-specific risk be diversified away by investing in both Visteon Corp 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 Visteon Corp and Contextlogic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Visteon Corp and Contextlogic, you can compare the effects of market volatilities on Visteon Corp 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 Visteon Corp with a short position of Contextlogic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visteon Corp and Contextlogic.
Diversification Opportunities for Visteon Corp and Contextlogic
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Visteon and Contextlogic is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Visteon Corp and Contextlogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contextlogic and Visteon Corp 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 Visteon Corp 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 Visteon Corp i.e., Visteon Corp and Contextlogic go up and down completely randomly.
Pair Corralation between Visteon Corp and Contextlogic
Allowing for the 90-day total investment horizon Visteon Corp is expected to generate 0.48 times more return on investment than Contextlogic. However, Visteon Corp is 2.09 times less risky than Contextlogic. It trades about 0.31 of its potential returns per unit of risk. Contextlogic is currently generating about 0.07 per unit of risk. If you would invest 8,434 in Visteon Corp on June 8, 2025 and sell it today you would earn a total of 4,079 from holding Visteon Corp or generate 48.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 16.13% |
| Values | Daily Returns |
Visteon Corp vs. Contextlogic
Performance |
| Timeline |
| Visteon Corp |
| Contextlogic |
Risk-Adjusted Performance
Mild
Weak | Strong |
Visteon Corp and Contextlogic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visteon Corp and Contextlogic
The main advantage of trading using opposite Visteon Corp and Contextlogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visteon Corp 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.| Visteon Corp vs. Autoliv | Visteon Corp vs. American Axle Manufacturing | Visteon Corp vs. BorgWarner | Visteon Corp vs. Dana 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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