Correlation Between Post Holdings and Hain Celestial
Can any of the company-specific risk be diversified away by investing in both Post Holdings 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 Post Holdings and Hain Celestial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Post Holdings and The Hain Celestial, you can compare the effects of market volatilities on Post Holdings 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 Post Holdings with a short position of Hain Celestial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Post Holdings and Hain Celestial.
Diversification Opportunities for Post Holdings and Hain Celestial
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Post and Hain is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Post Holdings and The Hain Celestial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hain Celestial and Post Holdings 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 Post Holdings 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 Post Holdings i.e., Post Holdings and Hain Celestial go up and down completely randomly.
Pair Corralation between Post Holdings and Hain Celestial
Given the investment horizon of 90 days Post Holdings is expected to generate 0.36 times more return on investment than Hain Celestial. However, Post Holdings is 2.79 times less risky than Hain Celestial. It trades about 0.03 of its potential returns per unit of risk. The Hain Celestial is currently generating about -0.07 per unit of risk. If you would invest 9,123 in Post Holdings on November 2, 2024 and sell it today you would earn a total of 1,470 from holding Post Holdings or generate 16.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Post Holdings vs. The Hain Celestial
Performance |
| Timeline |
| Post Holdings |
| Hain Celestial |
Post Holdings and Hain Celestial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Post Holdings and Hain Celestial
The main advantage of trading using opposite Post Holdings and Hain Celestial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Post Holdings 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.| Post Holdings vs. Simply Good Foods | Post Holdings vs. Treehouse Foods | Post Holdings vs. J J Snack | Post Holdings vs. Central Garden Pet |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |