Correlation Between Blue Apron and Etsy
Can any of the company-specific risk be diversified away by investing in both Blue Apron and Etsy 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 Etsy 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 Etsy Inc, you can compare the effects of market volatilities on Blue Apron and Etsy 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 Etsy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Apron and Etsy.
Diversification Opportunities for Blue Apron and Etsy
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Blue and Etsy is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Blue Apron Holdings, and Etsy Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Etsy Inc 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 Etsy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Etsy Inc has no effect on the direction of Blue Apron i.e., Blue Apron and Etsy go up and down completely randomly.
Pair Corralation between Blue Apron and Etsy
If you would invest 4,877 in Etsy Inc on August 29, 2024 and sell it today you would earn a total of 601.00 from holding Etsy Inc or generate 12.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Blue Apron Holdings, vs. Etsy Inc
Performance |
| Timeline |
| Blue Apron Holdings, |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Etsy Inc |
Blue Apron and Etsy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Apron and Etsy
The main advantage of trading using opposite Blue Apron and Etsy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Apron position performs unexpectedly, Etsy 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 Etsy will offset losses from the drop in Etsy's long position.| 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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