Correlation Between Maplebear and SFL

Can any of the company-specific risk be diversified away by investing in both Maplebear and SFL 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 Maplebear and SFL into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Maplebear and SFL Corporation, you can compare the effects of market volatilities on Maplebear and SFL 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 Maplebear with a short position of SFL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maplebear and SFL.

Diversification Opportunities for Maplebear and SFL

0.62

Correlation Coefficient

Maplebear  SFL

Poor diversification

The 3 months correlation between Maplebear and SFL is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Maplebear and SFL Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SFL Corporation and Maplebear 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 Maplebear are associated (or correlated) with SFL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SFL Corporation has no effect on the direction of Maplebear i.e., Maplebear and SFL go up and down completely randomly.

Pair Corralation between Maplebear and SFL

Given the investment horizon of 90 days Maplebear is expected to generate 1.57 times more return on investment than SFL. However, Maplebear is 1.57 times more volatile than SFL Corporation. It trades about -0.01 of its potential returns per unit of risk. SFL Corporation is currently generating about -0.13 per unit of risk. If you would invest  4,207  in Maplebear on December 28, 2024 and sell it today you would lose (234.00) from holding Maplebear or give up 5.56% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Maplebear  vs.  SFL Corp.

Maplebear

Risk-Adjusted Performance

Very Weak

Over the last 90 days Maplebear has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Maplebear is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

SFL Corporation

Risk-Adjusted Performance

Very Weak

Over the last 90 days SFL Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Maplebear and SFL

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

The idea behind Maplebear and SFL Corporation 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.