Correlation Between Kroger and Hain Celestial
Can any of the company-specific risk be diversified away by investing in both Kroger 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 Kroger and Hain Celestial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kroger Company and The Hain Celestial, you can compare the effects of market volatilities on Kroger 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 Kroger with a short position of Hain Celestial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kroger and Hain Celestial.
Diversification Opportunities for Kroger and Hain Celestial
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kroger and Hain is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Kroger Company and The Hain Celestial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hain Celestial and Kroger 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 Kroger Company 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 Kroger i.e., Kroger and Hain Celestial go up and down completely randomly.
Pair Corralation between Kroger and Hain Celestial
Allowing for the 90-day total investment horizon Kroger Company is expected to generate 0.61 times more return on investment than Hain Celestial. However, Kroger Company is 1.65 times less risky than Hain Celestial. It trades about 0.15 of its potential returns per unit of risk. The Hain Celestial is currently generating about -0.2 per unit of risk. If you would invest 4,937 in Kroger Company on February 2, 2024 and sell it today you would earn a total of 572.00 from holding Kroger Company or generate 11.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Kroger Company vs. The Hain Celestial
Performance |
Timeline |
Kroger Company |
Hain Celestial |
Kroger and Hain Celestial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kroger and Hain Celestial
The main advantage of trading using opposite Kroger and Hain Celestial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kroger 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.Kroger vs. Grocery Outlet Holding | Kroger vs. Sprouts Farmers Market | Kroger vs. Sendas Distribuidora SA | Kroger vs. Weis Markets |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume |