Correlation Between MGP Ingredients and Maplebear

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

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

Diversification Opportunities for MGP Ingredients and Maplebear

-0.21

Correlation Coefficient

MGP Ingredients  Maplebear

Very good diversification

The 3 months correlation between MGP and Maplebear is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding MGP Ingredients and Maplebear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maplebear and MGP Ingredients 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 MGP Ingredients 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 MGP Ingredients i.e., MGP Ingredients and Maplebear go up and down completely randomly.

Pair Corralation between MGP Ingredients and Maplebear

Given the investment horizon of 90 days MGP Ingredients is expected to under-perform the Maplebear. In addition to that, MGP Ingredients is 1.41 times more volatile than Maplebear. It trades about -0.09 of its total potential returns per unit of risk. Maplebear is currently generating about 0.14 per unit of volatility. If you would invest  4,412  in Maplebear on May 15, 2025 and sell it today you would earn a total of  686.00  from holding Maplebear or generate 15.55% return on investment over 90 days.

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

MGP Ingredients  vs.  Maplebear

MGP Ingredients

Risk-Adjusted Performance

Weakest

Over the last 90 days MGP Ingredients has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in September 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Maplebear

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Maplebear are ranked lower than 11 (%) 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 MGP Ingredients and Maplebear

The main advantage of trading using opposite MGP Ingredients and Maplebear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MGP Ingredients 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 MGP Ingredients 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.