Correlation Between Boston Beer and Maplebear

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

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

Diversification Opportunities for Boston Beer and Maplebear

-0.32

Correlation Coefficient

Boston Beer  Maplebear

Very good diversification

The 3 months correlation between Boston and Maplebear is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Boston Beer and Maplebear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maplebear and Boston Beer 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 Boston Beer 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 Boston Beer i.e., Boston Beer and Maplebear go up and down completely randomly.

Pair Corralation between Boston Beer and Maplebear

Considering the 90-day investment horizon Boston Beer is expected to under-perform the Maplebear. In addition to that, Boston Beer is 1.24 times more volatile than Maplebear. It trades about -0.08 of its total potential returns per unit of risk. Maplebear is currently generating about 0.11 per unit of volatility. If you would invest  4,294  in Maplebear on May 8, 2025 and sell it today you would earn a total of  500.00  from holding Maplebear or generate 11.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Boston Beer  vs.  Maplebear

Boston Beer

Risk-Adjusted Performance

Weakest

Over the last 90 days Boston Beer has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Maplebear

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Maplebear are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Maplebear may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Boston Beer and Maplebear

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