Correlation Between Grocery Outlet and Hain Celestial
Can any of the company-specific risk be diversified away by investing in both Grocery Outlet 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 Grocery Outlet and Hain Celestial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grocery Outlet Holding and The Hain Celestial, you can compare the effects of market volatilities on Grocery Outlet 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 Grocery Outlet with a short position of Hain Celestial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grocery Outlet and Hain Celestial.
Diversification Opportunities for Grocery Outlet and Hain Celestial
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grocery and Hain is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Grocery Outlet Holding and The Hain Celestial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hain Celestial and Grocery Outlet 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 Grocery Outlet Holding 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 Grocery Outlet i.e., Grocery Outlet and Hain Celestial go up and down completely randomly.
Pair Corralation between Grocery Outlet and Hain Celestial
Allowing for the 90-day total investment horizon Grocery Outlet Holding is expected to generate 0.76 times more return on investment than Hain Celestial. However, Grocery Outlet Holding is 1.32 times less risky than Hain Celestial. It trades about 0.54 of its potential returns per unit of risk. The Hain Celestial is currently generating about 0.01 per unit of risk. If you would invest 1,390 in Grocery Outlet Holding on August 31, 2024 and sell it today you would earn a total of 735.00 from holding Grocery Outlet Holding or generate 52.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grocery Outlet Holding vs. The Hain Celestial
Performance |
| Timeline |
| Grocery Outlet Holding |
| Hain Celestial |
Grocery Outlet and Hain Celestial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grocery Outlet and Hain Celestial
The main advantage of trading using opposite Grocery Outlet and Hain Celestial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grocery Outlet 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.| Grocery Outlet vs. Natural Grocers by | Grocery Outlet vs. Village Super Market | Grocery Outlet vs. Ingles Markets Incorporated | Grocery Outlet vs. Ocado Group plc |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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