Correlation Between Hain Celestial and Blue Star
Can any of the company-specific risk be diversified away by investing in both Hain Celestial and Blue Star 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 Hain Celestial and Blue Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hain Celestial and Blue Star Foods, you can compare the effects of market volatilities on Hain Celestial and Blue Star 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 Hain Celestial with a short position of Blue Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hain Celestial and Blue Star.
Diversification Opportunities for Hain Celestial and Blue Star
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hain and Blue is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding The Hain Celestial and Blue Star Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Star Foods and Hain Celestial 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 The Hain Celestial are associated (or correlated) with Blue Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Star Foods has no effect on the direction of Hain Celestial i.e., Hain Celestial and Blue Star go up and down completely randomly.
Pair Corralation between Hain Celestial and Blue Star
Given the investment horizon of 90 days The Hain Celestial is expected to generate 0.79 times more return on investment than Blue Star. However, The Hain Celestial is 1.27 times less risky than Blue Star. It trades about 0.0 of its potential returns per unit of risk. Blue Star Foods is currently generating about -0.35 per unit of risk. If you would invest 885.00 in The Hain Celestial on August 27, 2024 and sell it today you would lose (27.00) from holding The Hain Celestial or give up 3.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hain Celestial vs. Blue Star Foods
Performance |
| Timeline |
| Hain Celestial |
| Blue Star Foods |
Hain Celestial and Blue Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hain Celestial and Blue Star
The main advantage of trading using opposite Hain Celestial and Blue Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hain Celestial position performs unexpectedly, Blue Star 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 Blue Star will offset losses from the drop in Blue Star's long position.| Hain Celestial vs. J J Snack | Hain Celestial vs. Lancaster Colony | Hain Celestial vs. Treehouse Foods | Hain Celestial vs. Simply Good Foods |
| Blue Star vs. Better Choice | Blue Star vs. Stryve Foods | Blue Star vs. BioAdaptives | Blue Star vs. Beyond Oil |
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.
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