Correlation Between Duluth Holdings and Contextlogic

Can any of the company-specific risk be diversified away by investing in both Duluth Holdings 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 Duluth Holdings and Contextlogic into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Duluth Holdings and Contextlogic, you can compare the effects of market volatilities on Duluth Holdings 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 Duluth Holdings with a short position of Contextlogic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duluth Holdings and Contextlogic.

Diversification Opportunities for Duluth Holdings and Contextlogic

0.73

Correlation Coefficient

Duluth Holdings  Contextlogic

Poor diversification

The 3 months correlation between Duluth and Contextlogic is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Duluth Holdings and Contextlogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contextlogic and Duluth Holdings 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 Duluth Holdings 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 Duluth Holdings i.e., Duluth Holdings and Contextlogic go up and down completely randomly.

Pair Corralation between Duluth Holdings and Contextlogic

Given the investment horizon of 90 days Duluth Holdings is expected to generate 2.21 times more return on investment than Contextlogic. However, Duluth Holdings is 2.21 times more volatile than Contextlogic. It trades about 0.08 of its potential returns per unit of risk. Contextlogic is currently generating about 0.15 per unit of risk. If you would invest  168.00  in Duluth Holdings on February 4, 2025 and sell it today you would earn a total of  12.00  from holding Duluth Holdings or generate 7.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.24%
Values	Daily Returns

Duluth Holdings  vs.  Contextlogic

Duluth Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Duluth Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in June 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Contextlogic

Risk-Adjusted Performance

Very Weak

Over the last 90 days Contextlogic has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Duluth Holdings and Contextlogic

The main advantage of trading using opposite Duluth Holdings and Contextlogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duluth Holdings 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 Duluth Holdings 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.