Correlation Between Better Choice and Hain Celestial
Can any of the company-specific risk be diversified away by investing in both Better Choice 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 Better Choice and Hain Celestial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Better Choice and The Hain Celestial, you can compare the effects of market volatilities on Better Choice 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 Better Choice with a short position of Hain Celestial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Better Choice and Hain Celestial.
Diversification Opportunities for Better Choice and Hain Celestial
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Better and Hain is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Better Choice and The Hain Celestial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hain Celestial and Better Choice 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 Better Choice 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 Better Choice i.e., Better Choice and Hain Celestial go up and down completely randomly.
Pair Corralation between Better Choice and Hain Celestial
Given the investment horizon of 90 days Better Choice is expected to under-perform the Hain Celestial. In addition to that, Better Choice is 1.08 times more volatile than The Hain Celestial. It trades about -0.02 of its total potential returns per unit of risk. The Hain Celestial is currently generating about 0.0 per unit of volatility. If you would invest 835.00 in The Hain Celestial on August 24, 2024 and sell it today you would lose (21.50) from holding The Hain Celestial or give up 2.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Better Choice vs. The Hain Celestial
Performance |
| Timeline |
| Better Choice |
| Hain Celestial |
Better Choice and Hain Celestial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Better Choice and Hain Celestial
The main advantage of trading using opposite Better Choice and Hain Celestial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Better Choice 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.| Better Choice vs. Blue Star Foods | Better Choice vs. Stryve Foods | Better Choice vs. BioAdaptives | Better Choice vs. Beyond Oil |
| 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |