Correlation Between Blue Apron and Meituan ADR
Can any of the company-specific risk be diversified away by investing in both Blue Apron and Meituan ADR 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 Meituan ADR 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 Meituan ADR, you can compare the effects of market volatilities on Blue Apron and Meituan ADR 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 Meituan ADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Apron and Meituan ADR.
Diversification Opportunities for Blue Apron and Meituan ADR
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Blue and Meituan is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Blue Apron Holdings, and Meituan ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meituan ADR 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 Meituan ADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meituan ADR has no effect on the direction of Blue Apron i.e., Blue Apron and Meituan ADR go up and down completely randomly.
Pair Corralation between Blue Apron and Meituan ADR
If you would invest 497.00 in Blue Apron Holdings, on September 1, 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 | 4.76% |
| Values | Daily Returns |
Blue Apron Holdings, vs. Meituan ADR
Performance |
| Timeline |
| Blue Apron Holdings, |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Meituan ADR |
Blue Apron and Meituan ADR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Apron and Meituan ADR
The main advantage of trading using opposite Blue Apron and Meituan ADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Apron position performs unexpectedly, Meituan ADR 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 Meituan ADR will offset losses from the drop in Meituan ADR's long position.| Blue Apron vs. Hour Loop | Blue Apron vs. Wayfair | Blue Apron vs. Kidpik Corp | Blue Apron vs. Oriental Culture Holding |
| Meituan ADR vs. PDD Holdings | Meituan ADR vs. JD Inc Adr | Meituan ADR vs. Baozun Inc | Meituan ADR vs. Global E Online |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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