Correlation Between Blue Apron and AKA Brands
Can any of the company-specific risk be diversified away by investing in both Blue Apron and AKA Brands 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 Blue Apron and AKA Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blue Apron Holdings, and AKA Brands Holding, you can compare the effects of market volatilities on Blue Apron and AKA Brands 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 Blue Apron with a short position of AKA Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Apron and AKA Brands.
Diversification Opportunities for Blue Apron and AKA Brands
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Blue and AKA is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Blue Apron Holdings, and AKA Brands Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AKA Brands Holding and Blue Apron 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 Blue Apron Holdings, are associated (or correlated) with AKA Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AKA Brands Holding has no effect on the direction of Blue Apron i.e., Blue Apron and AKA Brands go up and down completely randomly.
Pair Corralation between Blue Apron and AKA Brands
If you would invest 2,300 in AKA Brands Holding on August 25, 2024 and sell it today you would lose (182.00) from holding AKA Brands Holding or give up 7.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 1.54% |
| Values | Daily Returns |
Blue Apron Holdings, vs. AKA Brands Holding
Performance |
| Timeline |
| Blue Apron Holdings, |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AKA Brands Holding |
Blue Apron and AKA Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Apron and AKA Brands
The main advantage of trading using opposite Blue Apron and AKA Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Apron position performs unexpectedly, AKA Brands 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 AKA Brands will offset losses from the drop in AKA Brands' long position.| Blue Apron vs. Hour Loop | Blue Apron vs. Wayfair | Blue Apron vs. Kidpik Corp | Blue Apron vs. Oriental Culture Holding |
| AKA Brands vs. Brilliant Earth Group | AKA Brands vs. Lulus Fashion Lounge | AKA Brands vs. Torrid Holdings | AKA Brands vs. Aveanna Healthcare Holdings |
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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