Correlation Between Blue Apron and JP Morgan

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Can any of the company-specific risk be diversified away by investing in both Blue Apron and JP Morgan 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 JP Morgan 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 JP Morgan Chase, you can compare the effects of market volatilities on Blue Apron and JP Morgan 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 JP Morgan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Apron and JP Morgan.

Diversification Opportunities for Blue Apron and JP Morgan

-0.21
  Correlation Coefficient

Very good diversification

The 3 months correlation between Blue Apron and JP Morgan is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Blue Apron Holdings and JP Morgan Chase in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JP Morgan Chase 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 JP Morgan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JP Morgan Chase has no effect on the direction of Blue Apron i.e., Blue Apron and JP Morgan go up and down completely randomly.

Pair Corralation between Blue Apron and JP Morgan

Given the investment horizon of 90 days Blue Apron Holdings is expected to generate 4.28 times more return on investment than JP Morgan. However, Blue Apron is 4.28 times more volatile than JP Morgan Chase. It trades about 0.0 of its potential returns per unit of risk. JP Morgan Chase is currently generating about -0.02 per unit of risk. If you would invest  808.00  in Blue Apron Holdings on May 14, 2022 and sell it today you would lose (427.00)  from holding Blue Apron Holdings or give up 52.85% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Blue Apron Holdings  vs.  JP Morgan Chase

 Performance (%) 
       Timeline  
Blue Apron Holdings 
Blue Apron Performance
3 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Blue Apron Holdings are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady basic indicators, Blue Apron disclosed solid returns over the last few months and may actually be approaching a breakup point.

Blue Apron Price Channel

JP Morgan Chase 
JP Morgan Performance
3 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in JP Morgan Chase are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively steady basic indicators, JP Morgan is not utilizing all of its potentials. The latest stock price chaos, may contribute to medium-term losses for the stakeholders.

JP Morgan Price Channel

Blue Apron and JP Morgan Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Blue Apron and JP Morgan

The main advantage of trading using opposite Blue Apron and JP Morgan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Apron position performs unexpectedly, JP Morgan 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 JP Morgan will offset losses from the drop in JP Morgan's long position.
The idea behind Blue Apron Holdings and JP Morgan Chase 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

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