Correlation Between Ziprecruiter and Contextlogic

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Can any of the company-specific risk be diversified away by investing in both Ziprecruiter 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 Ziprecruiter and Contextlogic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ziprecruiter and Contextlogic, you can compare the effects of market volatilities on Ziprecruiter 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 Ziprecruiter with a short position of Contextlogic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ziprecruiter and Contextlogic.

Diversification Opportunities for Ziprecruiter and Contextlogic

0.32
  Correlation Coefficient

Weak diversification

The 3 months correlation between Ziprecruiter and Contextlogic is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Ziprecruiter and Contextlogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contextlogic and Ziprecruiter 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 Ziprecruiter 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 Ziprecruiter i.e., Ziprecruiter and Contextlogic go up and down completely randomly.

Pair Corralation between Ziprecruiter and Contextlogic

Considering the 90-day investment horizon Ziprecruiter is expected to generate 10.85 times less return on investment than Contextlogic. In addition to that, Ziprecruiter is 1.31 times more volatile than Contextlogic. It trades about 0.0 of its total potential returns per unit of risk. Contextlogic is currently generating about 0.05 per unit of volatility. If you would invest  691.00  in Contextlogic on April 9, 2025 and sell it today you would earn a total of  48.00  from holding Contextlogic or generate 6.95% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy83.61%
ValuesDaily Returns

Ziprecruiter  vs.  Contextlogic

 Performance 
       Timeline  
Ziprecruiter 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Ziprecruiter has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable forward indicators, Ziprecruiter is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.
Contextlogic 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Contextlogic are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Contextlogic may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Ziprecruiter and Contextlogic Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Ziprecruiter and Contextlogic

The main advantage of trading using opposite Ziprecruiter and Contextlogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ziprecruiter 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.
The idea behind Ziprecruiter and Contextlogic pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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