Correlation Between GM and Blue Apron

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

Diversification Opportunities for GM and Blue Apron

0.89
  Correlation Coefficient

Very poor diversification

The 3 months correlation between GM and Blue Apron is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding General Motors 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 GM 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 General Motors 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 GM i.e., GM and Blue Apron go up and down completely randomly.

Pair Corralation between GM and Blue Apron

Allowing for the 90-day total investment horizon General Motors is expected to generate 0.4 times more return on investment than Blue Apron. However, General Motors is 2.49 times less risky than Blue Apron. It trades about -0.15 of its potential returns per unit of risk. Blue Apron Holdings is currently generating about -0.08 per unit of risk. If you would invest  6,406  in General Motors on February 18, 2022 and sell it today you would lose (2,794)  from holding General Motors or give up 43.62% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

General Motors  vs.  Blue Apron Holdings

 Performance (%) 
      Timeline 
General Motors 
GM Performance
0 of 100
Over the last 90 days General Motors has generated negative risk-adjusted returns adding no value to investors with long positions. Even with conflicting performance in the last few months, the Stock's primary indicators remain relatively steady which may send shares a bit higher in June 2022. The new chaos may also be a sign of medium-term up-swing for the company stakeholders.

GM 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

GM and Blue Apron Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with GM and Blue Apron

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

General Motors

Pair trading matchups for GM

The idea behind General Motors 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 Focused Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

Other Complementary Tools

Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Go
Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Probability Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Go
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Go
Global Correlations
Find global opportunities by holding instruments from different markets
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go