Correlation Between Hain Celestial and ConAgra Foods
Can any of the company-specific risk be diversified away by investing in both Hain Celestial and ConAgra 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 ConAgra 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 ConAgra Foods, you can compare the effects of market volatilities on Hain Celestial and ConAgra 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 ConAgra Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hain Celestial and ConAgra Foods.
Diversification Opportunities for Hain Celestial and ConAgra Foods
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hain and ConAgra is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding The Hain Celestial and ConAgra Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ConAgra Foods 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 ConAgra Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ConAgra Foods has no effect on the direction of Hain Celestial i.e., Hain Celestial and ConAgra Foods go up and down completely randomly.
Pair Corralation between Hain Celestial and ConAgra Foods
Given the investment horizon of 90 days The Hain Celestial is expected to under-perform the ConAgra Foods. In addition to that, Hain Celestial is 2.46 times more volatile than ConAgra Foods. It trades about -0.39 of its total potential returns per unit of risk. ConAgra Foods is currently generating about 0.26 per unit of volatility. If you would invest 2,797 in ConAgra Foods on December 29, 2023 and sell it today you would earn a total of 152.00 from holding ConAgra Foods or generate 5.43% 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. ConAgra Foods
Performance |
Timeline |
Hain Celestial |
ConAgra Foods |
Hain Celestial and ConAgra Foods Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hain Celestial and ConAgra Foods
The main advantage of trading using opposite Hain Celestial and ConAgra Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hain Celestial position performs unexpectedly, ConAgra 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 ConAgra Foods will offset losses from the drop in ConAgra Foods' long position.Hain Celestial vs. Bunge Limited | Hain Celestial vs. Altria Group | Hain Celestial vs. Philip Morris International | Hain Celestial vs. Dole PLC |
ConAgra Foods vs. Bunge Limited | ConAgra Foods vs. Altria Group | ConAgra Foods vs. Philip Morris International | ConAgra Foods vs. Dole 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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