Correlation Between Hain Celestial and Premier Foods
Can any of the company-specific risk be diversified away by investing in both Hain Celestial and Premier Foods 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 Premier Foods 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 Premier Foods Plc, you can compare the effects of market volatilities on Hain Celestial and Premier Foods 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 Premier Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hain Celestial and Premier Foods.
Diversification Opportunities for Hain Celestial and Premier Foods
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hain and Premier is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding The Hain Celestial and Premier Foods Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Premier Foods Plc 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 Premier Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Premier Foods Plc has no effect on the direction of Hain Celestial i.e., Hain Celestial and Premier Foods go up and down completely randomly.
Pair Corralation between Hain Celestial and Premier Foods
Given the investment horizon of 90 days The Hain Celestial is expected to under-perform the Premier Foods. In addition to that, Hain Celestial is 1.25 times more volatile than Premier Foods Plc. It trades about -0.04 of its total potential returns per unit of risk. Premier Foods Plc is currently generating about 0.12 per unit of volatility. If you would invest 132.00 in Premier Foods Plc on August 24, 2024 and sell it today you would earn a total of 76.00 from holding Premier Foods Plc or generate 57.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 40.24% |
| Values | Daily Returns |
The Hain Celestial vs. Premier Foods Plc
Performance |
| Timeline |
| Hain Celestial |
| Premier Foods Plc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hain Celestial and Premier Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hain Celestial and Premier Foods
The main advantage of trading using opposite Hain Celestial and Premier Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hain Celestial position performs unexpectedly, Premier Foods 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 Premier Foods will offset losses from the drop in Premier Foods' long position.| Hain Celestial vs. J J Snack | Hain Celestial vs. Lancaster Colony | Hain Celestial vs. Treehouse Foods | Hain Celestial vs. Simply Good Foods |
| Premier Foods vs. Torque Lifestyle Brands | Premier Foods vs. Naturally Splendid Enterprises | Premier Foods vs. Aryzta AG PK | Premier Foods vs. Premier Foods Plc |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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