Correlation Between Hain Celestial and Kellanova
Can any of the company-specific risk be diversified away by investing in both Hain Celestial and Kellanova 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 Kellanova 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 Kellanova, you can compare the effects of market volatilities on Hain Celestial and Kellanova 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 Kellanova. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hain Celestial and Kellanova.
Diversification Opportunities for Hain Celestial and Kellanova
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hain and Kellanova is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding The Hain Celestial and Kellanova in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kellanova 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 Kellanova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kellanova has no effect on the direction of Hain Celestial i.e., Hain Celestial and Kellanova go up and down completely randomly.
Pair Corralation between Hain Celestial and Kellanova
Given the investment horizon of 90 days The Hain Celestial is expected to generate 18.86 times more return on investment than Kellanova. However, Hain Celestial is 18.86 times more volatile than Kellanova. It trades about 0.04 of its potential returns per unit of risk. Kellanova is currently generating about 0.11 per unit of risk. If you would invest 826.00 in The Hain Celestial on August 28, 2024 and sell it today you would earn a total of 32.00 from holding The Hain Celestial or generate 3.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hain Celestial vs. Kellanova
Performance |
| Timeline |
| Hain Celestial |
| Kellanova |
Hain Celestial and Kellanova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hain Celestial and Kellanova
The main advantage of trading using opposite Hain Celestial and Kellanova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hain Celestial position performs unexpectedly, Kellanova 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 Kellanova will offset losses from the drop in Kellanova'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 |
| Kellanova vs. Bellring Brands LLC | Kellanova vs. Ingredion Incorporated | Kellanova vs. Nomad Foods | Kellanova 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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