Correlation Between Metro and Maplebear

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

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

Diversification Opportunities for Metro and Maplebear

0.31

Correlation Coefficient

Metro  Maplebear

Weak diversification

The 3 months correlation between Metro and Maplebear is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Metro Inc and Maplebear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maplebear and Metro 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 Metro Inc 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 Metro i.e., Metro and Maplebear go up and down completely randomly.

Pair Corralation between Metro and Maplebear

Assuming the 90 days trading horizon Metro Inc is expected to generate 0.41 times more return on investment than Maplebear. However, Metro Inc is 2.46 times less risky than Maplebear. It trades about 0.01 of its potential returns per unit of risk. Maplebear is currently generating about -0.02 per unit of risk. If you would invest  9,832  in Metro Inc on August 26, 2025 and sell it today you would earn a total of  2.00  from holding Metro Inc or generate 0.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Metro Inc  vs.  Maplebear

Metro Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days Metro Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Metro is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Maplebear

Risk-Adjusted Performance

Weakest

Over the last 90 days Maplebear has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Maplebear is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Metro and Maplebear

The main advantage of trading using opposite Metro and Maplebear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metro 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 Metro Inc 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.