Correlation Between Albertsons Companies and Maplebear

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

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

Diversification Opportunities for Albertsons Companies and Maplebear

-0.41

Correlation Coefficient

Albertsons Companies  Maplebear

Very good diversification

The 3 months correlation between Albertsons and Maplebear is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Albertsons Companies and Maplebear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maplebear and Albertsons Companies 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 Albertsons Companies are associated (or correlated) with Maplebear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maplebear has no effect on the direction of Albertsons Companies i.e., Albertsons Companies and Maplebear go up and down completely randomly.

Pair Corralation between Albertsons Companies and Maplebear

Considering the 90-day investment horizon Albertsons Companies is expected to under-perform the Maplebear. But the stock apears to be less risky and, when comparing its historical volatility, Albertsons Companies is 1.18 times less risky than Maplebear. The stock trades about -0.11 of its potential returns per unit of risk. The Maplebear is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  4,361  in Maplebear on May 11, 2025 and sell it today you would earn a total of  760.00  from holding Maplebear or generate 17.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Albertsons Companies  vs.  Maplebear

Albertsons Companies

Risk-Adjusted Performance

Weakest

Over the last 90 days Albertsons Companies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's fundamental indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Maplebear

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Maplebear are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Maplebear unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Albertsons Companies and Maplebear

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

The idea behind Albertsons Companies and Maplebear 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.