Correlation Between Premier Foods and Hain Celestial
Can any of the company-specific risk be diversified away by investing in both Premier Foods and Hain Celestial 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 Premier Foods and Hain Celestial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Premier Foods Plc and The Hain Celestial, you can compare the effects of market volatilities on Premier Foods and Hain Celestial 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 Premier Foods with a short position of Hain Celestial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Premier Foods and Hain Celestial.
Diversification Opportunities for Premier Foods and Hain Celestial
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Premier and Hain is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Premier Foods Plc and The Hain Celestial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hain Celestial and Premier Foods 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 Premier Foods Plc are associated (or correlated) with Hain Celestial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hain Celestial has no effect on the direction of Premier Foods i.e., Premier Foods and Hain Celestial go up and down completely randomly.
Pair Corralation between Premier Foods and Hain Celestial
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 Against |
| Strength | Insignificant |
| Accuracy | 1.59% |
| Values | Daily Returns |
Premier Foods Plc vs. The Hain Celestial
Performance |
| Timeline |
| Premier Foods Plc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Hain Celestial |
Premier Foods and Hain Celestial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Premier Foods and Hain Celestial
The main advantage of trading using opposite Premier Foods and Hain Celestial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Premier Foods position performs unexpectedly, Hain Celestial 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 Hain Celestial will offset losses from the drop in Hain Celestial's long position.| Premier Foods vs. Torque Lifestyle Brands | Premier Foods vs. Naturally Splendid Enterprises | Premier Foods vs. Aryzta AG PK | Premier Foods vs. Premier Foods Plc |
| Hain Celestial vs. J J Snack | Hain Celestial vs. Lancaster Colony | Hain Celestial vs. Treehouse Foods | Hain Celestial 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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