Correlation Between Blue Apron and Yunji

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

Diversification Opportunities for Blue Apron and Yunji

0.48

Correlation Coefficient

Blue Apron  Yunji

Very weak diversification

The 3 months correlation between Blue and Yunji is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Blue Apron Holdings, and Yunji Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunji Inc 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 Yunji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunji Inc has no effect on the direction of Blue Apron i.e., Blue Apron and Yunji go up and down completely randomly.

Pair Corralation between Blue Apron and Yunji

If you would invest  497.00  in Blue Apron Holdings, on September 1, 2024 and sell it today you would earn a total of  0.00  from holding Blue Apron Holdings, or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	4.76%
Values	Daily Returns

Blue Apron Holdings,  vs.  Yunji Inc

Blue Apron Holdings,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Blue Apron Holdings, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Blue Apron is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Yunji Inc

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Yunji Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak forward-looking indicators, Yunji may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with Blue Apron and Yunji

The main advantage of trading using opposite Blue Apron and Yunji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Apron position performs unexpectedly, Yunji 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 Yunji will offset losses from the drop in Yunji's long position.

The idea behind Blue Apron Holdings, and Yunji Inc 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.

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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.