Correlation Between Post Holdings and Hostess Brands
Can any of the company-specific risk be diversified away by investing in both Post Holdings and Hostess Brands 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 Hostess Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Post Holdings and Hostess Brands, you can compare the effects of market volatilities on Post Holdings and Hostess Brands 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 Hostess Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Post Holdings and Hostess Brands.
Diversification Opportunities for Post Holdings and Hostess Brands
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Post and Hostess is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Post Holdings and Hostess Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hostess Brands 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 Hostess Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hostess Brands has no effect on the direction of Post Holdings i.e., Post Holdings and Hostess Brands go up and down completely randomly.
Pair Corralation between Post Holdings and Hostess Brands
If you would invest 10,642 in Post Holdings on January 11, 2025 and sell it today you would earn a total of 1,051 from holding Post Holdings or generate 9.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Post Holdings vs. Hostess Brands
Performance |
| Timeline |
| Post Holdings |
| Hostess Brands |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Post Holdings and Hostess Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Post Holdings and Hostess Brands
The main advantage of trading using opposite Post Holdings and Hostess Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Post Holdings position performs unexpectedly, Hostess Brands 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 Hostess Brands will offset losses from the drop in Hostess Brands' 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 |
| Hostess Brands vs. Simply Good Foods | Hostess Brands vs. Treehouse Foods | Hostess Brands vs. Post Holdings | Hostess Brands vs. Nomad 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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