Correlation Between Dingdong Limited and Maplebear
Can any of the company-specific risk be diversified away by investing in both Dingdong Limited 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 Dingdong Limited and Maplebear into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dingdong Limited ADR and Maplebear, you can compare the effects of market volatilities on Dingdong Limited 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 Dingdong Limited with a short position of Maplebear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dingdong Limited and Maplebear.
Diversification Opportunities for Dingdong Limited and Maplebear
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dingdong and Maplebear is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Dingdong Limited ADR and Maplebear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maplebear and Dingdong Limited 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 Dingdong Limited ADR 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 Dingdong Limited i.e., Dingdong Limited and Maplebear go up and down completely randomly.
Pair Corralation between Dingdong Limited and Maplebear
Considering the 90-day investment horizon Dingdong Limited ADR is expected to generate 1.27 times more return on investment than Maplebear. However, Dingdong Limited is 1.27 times more volatile than Maplebear. It trades about 0.01 of its potential returns per unit of risk. Maplebear is currently generating about -0.03 per unit of risk. If you would invest 209.00 in Dingdong Limited ADR on June 1, 2025 and sell it today you would lose (3.00) from holding Dingdong Limited ADR or give up 1.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Dingdong Limited ADR vs. Maplebear
Performance |
| Timeline |
| Dingdong Limited ADR |
| Maplebear |
Dingdong Limited and Maplebear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dingdong Limited and Maplebear
The main advantage of trading using opposite Dingdong Limited and Maplebear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dingdong Limited 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.| Dingdong Limited vs. Natural Grocers by | Dingdong Limited vs. Ingles Markets Incorporated | Dingdong Limited vs. Krispy Kreme | Dingdong Limited vs. Grocery Outlet Holding |
| Maplebear vs. Alliant Energy Corp | Maplebear vs. CVR Partners LP | Maplebear vs. NextEra Energy, | Maplebear vs. Codexis |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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