Correlation Between Blue Apron and Carvana Co

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Blue Apron and Carvana Co 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 Carvana Co 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 Carvana Co Cl, you can compare the effects of market volatilities on Blue Apron and Carvana Co 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 Carvana Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Apron and Carvana Co.

Diversification Opportunities for Blue Apron and Carvana Co

0.83
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Blue Apron and Carvana is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Blue Apron Holdings and Carvana Co Cl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carvana Co Cl 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 Carvana Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carvana Co Cl has no effect on the direction of Blue Apron i.e., Blue Apron and Carvana Co go up and down completely randomly.

Pair Corralation between Blue Apron and Carvana Co

Given the investment horizon of 90 days Blue Apron Holdings is expected to generate 1.28 times more return on investment than Carvana Co. However, Blue Apron is 1.28 times more volatile than Carvana Co Cl. It trades about -0.01 of its potential returns per unit of risk. Carvana Co Cl is currently generating about -0.03 per unit of risk. If you would invest  1,133  in Blue Apron Holdings on February 25, 2022 and sell it today you would lose (823.00)  from holding Blue Apron Holdings or give up 72.64% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Blue Apron Holdings  vs.  Carvana Co Cl

 Performance (%) 
      Timeline 
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 fragile 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

Carvana Co Cl 
Carvana Performance
0 of 100
Over the last 90 days Carvana Co Cl has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in June 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

Carvana Price Channel

Blue Apron and Carvana Co Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Blue Apron and Carvana Co

The main advantage of trading using opposite Blue Apron and Carvana Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Apron position performs unexpectedly, Carvana Co 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 Carvana Co will offset losses from the drop in Carvana Co's long position.
The idea behind Blue Apron Holdings and Carvana Co Cl 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

Other Complementary Tools

Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Go
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Go
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Go
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Global Correlations
Find global opportunities by holding instruments from different markets
Go
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Fundamental Analysis
View fundamental data based on most recent published financial statements
Go
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Go
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go