Correlation Between Wayfair and Blue Apron
Can any of the company-specific risk be diversified away by investing in both Wayfair 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 Wayfair and Blue Apron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wayfair and Blue Apron Holdings,, you can compare the effects of market volatilities on Wayfair 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 Wayfair with a short position of Blue Apron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wayfair and Blue Apron.
Diversification Opportunities for Wayfair and Blue Apron
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Wayfair and Blue is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Wayfair 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 Wayfair 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 Wayfair 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 Wayfair i.e., Wayfair and Blue Apron go up and down completely randomly.
Pair Corralation between Wayfair and Blue Apron
If you would invest 5,174 in Wayfair on November 9, 2024 and sell it today you would lose (437.00) from holding Wayfair or give up 8.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Wayfair vs. Blue Apron Holdings,
Performance |
| Timeline |
| Wayfair |
| Blue Apron Holdings, |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Wayfair and Blue Apron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wayfair and Blue Apron
The main advantage of trading using opposite Wayfair and Blue Apron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wayfair 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.The idea behind Wayfair and Blue Apron Holdings, pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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