Correlation Between Chefs Warehouse and Maplebear

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

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

Diversification Opportunities for Chefs Warehouse and Maplebear

0.45

Correlation Coefficient

Chefs Warehouse  Maplebear

Very weak diversification

The 3 months correlation between Chefs and Maplebear is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding The Chefs Warehouse and Maplebear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maplebear and Chefs Warehouse 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 The Chefs Warehouse 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 Chefs Warehouse i.e., Chefs Warehouse and Maplebear go up and down completely randomly.

Pair Corralation between Chefs Warehouse and Maplebear

Given the investment horizon of 90 days Chefs Warehouse is expected to generate 1.22 times less return on investment than Maplebear. But when comparing it to its historical volatility, The Chefs Warehouse is 1.16 times less risky than Maplebear. It trades about 0.13 of its potential returns per unit of risk. Maplebear is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  3,992  in Maplebear on April 27, 2025 and sell it today you would earn a total of  849.00  from holding Maplebear or generate 21.27% return on investment over 90 days.

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

The Chefs Warehouse  vs.  Maplebear

Chefs Warehouse

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in The Chefs Warehouse are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady technical and fundamental indicators, Chefs Warehouse reported solid returns over the last few months and may actually be approaching a breakup point.

Maplebear

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Maplebear are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Maplebear unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Chefs Warehouse and Maplebear

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

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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.