Correlation Between Advantage Solutions and Blue Apron

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Advantage Solutions 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 Advantage Solutions and Blue Apron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advantage Solutions and Blue Apron Holdings, you can compare the effects of market volatilities on Advantage Solutions 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 Advantage Solutions with a short position of Blue Apron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advantage Solutions and Blue Apron.

Diversification Opportunities for Advantage Solutions and Blue Apron

0.84
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Advantage and Blue Apron is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Advantage Solutions 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 Advantage Solutions 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 Advantage Solutions 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 Advantage Solutions i.e., Advantage Solutions and Blue Apron go up and down completely randomly.

Pair Corralation between Advantage Solutions and Blue Apron

Considering the 90-day investment horizon Advantage Solutions is expected to under-perform the Blue Apron. But the stock apears to be less risky and, when comparing its historical volatility, Advantage Solutions is 2.31 times less risky than Blue Apron. The stock trades about -0.23 of its potential returns per unit of risk. The Blue Apron Holdings is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest  418.00  in Blue Apron Holdings on February 18, 2022 and sell it today you would lose (100.00)  from holding Blue Apron Holdings or give up 23.92% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Advantage Solutions  vs.  Blue Apron Holdings

 Performance (%) 
      Timeline 
Advantage Solutions 
Advantage Performance
0 of 100
Over the last 90 days Advantage Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's fundamental indicators remain fairly stable which may send shares a bit higher in June 2022. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Advantage Price Channel

Blue Apron Holdings 
Blue Apron Performance
0 of 100
Over the last 90 days Blue Apron Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in June 2022. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Blue Apron Price Channel

Advantage Solutions and Blue Apron Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Advantage Solutions and Blue Apron

The main advantage of trading using opposite Advantage Solutions and Blue Apron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advantage Solutions 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.

Advantage Solutions

Pair trading matchups for Advantage Solutions

The idea behind Advantage Solutions 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.
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

Other Complementary Tools

Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Go
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Fund Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Go
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Go
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Go
Shere Portfolio
Track or share privately all of your investments from the convenience of any device
Go
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go