Correlation Between Aspen Technology and Blue Apron
Can any of the company-specific risk be diversified away by investing in both Aspen Technology 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 Aspen Technology and Blue Apron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aspen Technology and Blue Apron Holdings, you can compare the effects of market volatilities on Aspen Technology 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 Aspen Technology with a short position of Blue Apron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspen Technology and Blue Apron.
Diversification Opportunities for Aspen Technology and Blue Apron
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aspen and Blue is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Aspen Technology 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 Aspen Technology 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 Aspen Technology 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 Aspen Technology i.e., Aspen Technology and Blue Apron go up and down completely randomly.
Pair Corralation between Aspen Technology and Blue Apron
Given the investment horizon of 90 days Aspen Technology is expected to generate 12.91 times less return on investment than Blue Apron. But when comparing it to its historical volatility, Aspen Technology is 7.7 times less risky than Blue Apron. It trades about 0.06 of its potential returns per unit of risk. Blue Apron Holdings is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 623.00 in Blue Apron Holdings on January 24, 2024 and sell it today you would earn a total of 676.00 from holding Blue Apron Holdings or generate 108.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 47.57% |
Values | Daily Returns |
Aspen Technology vs. Blue Apron Holdings
Performance |
Timeline |
Aspen Technology |
Blue Apron Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aspen Technology and Blue Apron Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aspen Technology and Blue Apron
The main advantage of trading using opposite Aspen Technology and Blue Apron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspen Technology 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.Aspen Technology vs. C3 Ai Inc | Aspen Technology vs. Shopify | Aspen Technology vs. Snowflake | Aspen Technology vs. ServiceNow |
Blue Apron vs. Hour Loop | Blue Apron vs. ContextlogicInc | Blue Apron vs. Wayfair | Blue Apron vs. Secoo 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 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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