Correlation Between Dingdong ADR and Maplebear
Can any of the company-specific risk be diversified away by investing in both Dingdong ADR 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 ADR and Maplebear into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dingdong ADR and Maplebear, you can compare the effects of market volatilities on Dingdong ADR 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 ADR with a short position of Maplebear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dingdong ADR and Maplebear.
Diversification Opportunities for Dingdong ADR and Maplebear
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dingdong and Maplebear is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Dingdong ADR and Maplebear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maplebear and Dingdong ADR 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 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 ADR i.e., Dingdong ADR and Maplebear go up and down completely randomly.
Pair Corralation between Dingdong ADR and Maplebear
Considering the 90-day investment horizon Dingdong ADR is expected to under-perform the Maplebear. In addition to that, Dingdong ADR is 1.17 times more volatile than Maplebear. It trades about 0.0 of its total potential returns per unit of risk. Maplebear is currently generating about 0.15 per unit of volatility. If you would invest 3,741 in Maplebear on April 7, 2025 and sell it today you would earn a total of 977.00 from holding Maplebear or generate 26.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dingdong ADR vs. Maplebear
Performance |
| Timeline |
| Dingdong ADR |
| Maplebear |
Dingdong ADR and Maplebear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dingdong ADR and Maplebear
The main advantage of trading using opposite Dingdong ADR and Maplebear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dingdong ADR 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 ADR vs. Centessa Pharmaceuticals PLC | Dingdong ADR vs. Lipocine | Dingdong ADR vs. Titan International | Dingdong ADR vs. CECO Environmental Corp |
| Maplebear vs. GameStop Corp | Maplebear vs. Hochschild Mining PLC | Maplebear vs. National Vision Holdings | Maplebear vs. IAC Inc |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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