Correlation Between Blue Apron and Alibaba Group
Can any of the company-specific risk be diversified away by investing in both Blue Apron and Alibaba Group 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 Alibaba Group 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 Alibaba Group Holding, you can compare the effects of market volatilities on Blue Apron and Alibaba Group 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 Alibaba Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Apron and Alibaba Group.
Diversification Opportunities for Blue Apron and Alibaba Group
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Blue and Alibaba is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Blue Apron Holdings, and Alibaba Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alibaba Group 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 Alibaba Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alibaba Group Holding has no effect on the direction of Blue Apron i.e., Blue Apron and Alibaba Group go up and down completely randomly.
Pair Corralation between Blue Apron and Alibaba Group
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 | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Blue Apron Holdings, vs. Alibaba Group Holding
Performance |
| Timeline |
| Blue Apron Holdings, |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Alibaba Group Holding |
Blue Apron and Alibaba Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Apron and Alibaba Group
The main advantage of trading using opposite Blue Apron and Alibaba Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Apron position performs unexpectedly, Alibaba Group 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 Alibaba Group will offset losses from the drop in Alibaba Group's long position.| Blue Apron vs. Hour Loop | Blue Apron vs. Wayfair | Blue Apron vs. Kidpik Corp | Blue Apron vs. Oriental Culture Holding |
| Alibaba Group vs. PDD Holdings | Alibaba Group vs. MercadoLibre | Alibaba Group vs. JD Inc Adr | Alibaba Group vs. Sea |
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 CEOs Directory module to screen CEOs from public companies around the world.
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