Correlation Between Beyond Oil and Hain Celestial
Can any of the company-specific risk be diversified away by investing in both Beyond Oil and Hain Celestial 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 Beyond Oil and Hain Celestial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beyond Oil and The Hain Celestial, you can compare the effects of market volatilities on Beyond Oil and Hain Celestial 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 Beyond Oil with a short position of Hain Celestial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beyond Oil and Hain Celestial.
Diversification Opportunities for Beyond Oil and Hain Celestial
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Beyond and Hain is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Beyond Oil and The Hain Celestial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hain Celestial and Beyond Oil 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 Beyond Oil are associated (or correlated) with Hain Celestial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hain Celestial has no effect on the direction of Beyond Oil i.e., Beyond Oil and Hain Celestial go up and down completely randomly.
Pair Corralation between Beyond Oil and Hain Celestial
Assuming the 90 days horizon Beyond Oil is expected to generate 0.53 times more return on investment than Hain Celestial. However, Beyond Oil is 1.9 times less risky than Hain Celestial. It trades about 0.08 of its potential returns per unit of risk. The Hain Celestial is currently generating about 0.0 per unit of risk. If you would invest 107.00 in Beyond Oil on August 24, 2024 and sell it today you would earn a total of 4.00 from holding Beyond Oil or generate 3.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Beyond Oil vs. The Hain Celestial
Performance |
| Timeline |
| Beyond Oil |
| Hain Celestial |
Beyond Oil and Hain Celestial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beyond Oil and Hain Celestial
The main advantage of trading using opposite Beyond Oil and Hain Celestial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beyond Oil position performs unexpectedly, Hain Celestial 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 Hain Celestial will offset losses from the drop in Hain Celestial's long position.| Beyond Oil vs. Arrow Electronics | Beyond Oil vs. Perseus Mining Limited | Beyond Oil vs. Freedom Internet Group | Beyond Oil vs. Stratasys |
| Hain Celestial vs. J J Snack | Hain Celestial vs. Lancaster Colony | Hain Celestial vs. Treehouse Foods | Hain Celestial vs. Simply Good Foods |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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