Correlation Between Hain Celestial and Freshpet
Can any of the company-specific risk be diversified away by investing in both Hain Celestial and Freshpet 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 Freshpet 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 Freshpet, you can compare the effects of market volatilities on Hain Celestial and Freshpet 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 Freshpet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hain Celestial and Freshpet.
Diversification Opportunities for Hain Celestial and Freshpet
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hain and Freshpet is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding The Hain Celestial and Freshpet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freshpet 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 Freshpet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freshpet has no effect on the direction of Hain Celestial i.e., Hain Celestial and Freshpet go up and down completely randomly.
Pair Corralation between Hain Celestial and Freshpet
Given the investment horizon of 90 days The Hain Celestial is expected to under-perform the Freshpet. In addition to that, Hain Celestial is 1.51 times more volatile than Freshpet. It trades about -0.01 of its total potential returns per unit of risk. Freshpet is currently generating about 0.15 per unit of volatility. If you would invest 7,035 in Freshpet on August 24, 2024 and sell it today you would earn a total of 8,647 from holding Freshpet or generate 122.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hain Celestial vs. Freshpet
Performance |
| Timeline |
| Hain Celestial |
| Freshpet |
Hain Celestial and Freshpet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hain Celestial and Freshpet
The main advantage of trading using opposite Hain Celestial and Freshpet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hain Celestial position performs unexpectedly, Freshpet 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 Freshpet will offset losses from the drop in Freshpet'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 |
| Freshpet vs. Bellring Brands LLC | Freshpet vs. Treehouse Foods | Freshpet vs. Ingredion Incorporated | Freshpet vs. JM Smucker |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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