Correlation Between AKA Brands and Blue Apron
Can any of the company-specific risk be diversified away by investing in both AKA Brands and Blue Apron 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 AKA Brands and Blue Apron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AKA Brands Holding and Blue Apron Holdings,, you can compare the effects of market volatilities on AKA Brands and Blue Apron 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 AKA Brands with a short position of Blue Apron. Check out your portfolio center. Please also check ongoing floating volatility patterns of AKA Brands and Blue Apron.
Diversification Opportunities for AKA Brands and Blue Apron
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between AKA and Blue is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding AKA Brands Holding and Blue Apron Holdings, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Apron Holdings, and AKA Brands 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 AKA Brands Holding are associated (or correlated) with Blue Apron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Apron Holdings, has no effect on the direction of AKA Brands i.e., AKA Brands and Blue Apron go up and down completely randomly.
Pair Corralation between AKA Brands and Blue Apron
If you would invest 497.00 in Blue Apron Holdings, on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Blue Apron Holdings, or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
AKA Brands Holding vs. Blue Apron Holdings,
Performance |
| Timeline |
| AKA Brands Holding |
| Blue Apron Holdings, |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AKA Brands and Blue Apron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AKA Brands and Blue Apron
The main advantage of trading using opposite AKA Brands and Blue Apron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AKA Brands position performs unexpectedly, Blue Apron 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 Blue Apron will offset losses from the drop in Blue Apron's long position.| AKA Brands vs. Brilliant Earth Group | AKA Brands vs. Lulus Fashion Lounge | AKA Brands vs. Torrid Holdings | AKA Brands vs. Aveanna Healthcare Holdings |
| Blue Apron vs. Hour Loop | Blue Apron vs. Wayfair | Blue Apron vs. Kidpik Corp | Blue Apron vs. Oriental Culture Holding |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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