Correlation Between IPower and Blue Apron
Can any of the company-specific risk be diversified away by investing in both IPower 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 IPower and Blue Apron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iPower Inc and Blue Apron Holdings,, you can compare the effects of market volatilities on IPower 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 IPower with a short position of Blue Apron. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPower and Blue Apron.
Diversification Opportunities for IPower and Blue Apron
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IPower and Blue is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding iPower Inc 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 IPower 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 iPower Inc 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 IPower i.e., IPower and Blue Apron go up and down completely randomly.
Pair Corralation between IPower and Blue Apron
If you would invest 497.00 in Blue Apron Holdings, on August 28, 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 | Significant |
| Accuracy | 1.59% |
| Values | Daily Returns |
iPower Inc vs. Blue Apron Holdings,
Performance |
| Timeline |
| iPower Inc |
| Blue Apron Holdings, |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IPower and Blue Apron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IPower and Blue Apron
The main advantage of trading using opposite IPower and Blue Apron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPower 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.| IPower vs. Hour Loop | IPower vs. Qurate Retail Series | IPower vs. MOGU Inc | IPower vs. Meiwu Technology Co |
| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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