Correlation Between Hain Celestial and Ingredion Incorporated
Can any of the company-specific risk be diversified away by investing in both Hain Celestial and Ingredion Incorporated 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 Ingredion Incorporated 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 Ingredion Incorporated, you can compare the effects of market volatilities on Hain Celestial and Ingredion Incorporated 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 Ingredion Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hain Celestial and Ingredion Incorporated.
Diversification Opportunities for Hain Celestial and Ingredion Incorporated
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hain and Ingredion is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding The Hain Celestial and Ingredion Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingredion Incorporated 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 Ingredion Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingredion Incorporated has no effect on the direction of Hain Celestial i.e., Hain Celestial and Ingredion Incorporated go up and down completely randomly.
Pair Corralation between Hain Celestial and Ingredion Incorporated
Given the investment horizon of 90 days The Hain Celestial is expected to under-perform the Ingredion Incorporated. In addition to that, Hain Celestial is 2.3 times more volatile than Ingredion Incorporated. It trades about -0.01 of its total potential returns per unit of risk. Ingredion Incorporated is currently generating about 0.11 per unit of volatility. If you would invest 9,430 in Ingredion Incorporated on August 25, 2024 and sell it today you would earn a total of 5,217 from holding Ingredion Incorporated or generate 55.32% 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. Ingredion Incorporated
Performance |
| Timeline |
| Hain Celestial |
| Ingredion Incorporated |
Hain Celestial and Ingredion Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hain Celestial and Ingredion Incorporated
The main advantage of trading using opposite Hain Celestial and Ingredion Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hain Celestial position performs unexpectedly, Ingredion Incorporated 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 Ingredion Incorporated will offset losses from the drop in Ingredion Incorporated'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 |
| Ingredion Incorporated vs. Lancaster Colony | Ingredion Incorporated vs. Treehouse Foods | Ingredion Incorporated vs. John B Sanfilippo | Ingredion Incorporated vs. Seneca Foods Corp |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |