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

0.1

Correlation Coefficient

Kroger  Hain Celestial

Average diversification

The 3 months correlation between Kroger and Hain is 0.1. 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 is expected to generate 30.28 times less return on investment than Hain Celestial. But when comparing it to its historical volatility, Kroger Company is 2.57 times less risky than Hain Celestial. It trades about 0.0 of its potential returns per unit of risk. The Hain Celestial is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  145.00  in The Hain Celestial on May 7, 2025 and sell it today you would earn a total of  7.00  from holding The Hain Celestial or generate 4.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Kroger Company  vs.  The Hain Celestial

Kroger Company

Risk-Adjusted Performance

Weakest

Over the last 90 days Kroger Company has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Kroger is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Hain Celestial

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in The Hain Celestial are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady forward indicators, Hain Celestial may actually be approaching a critical reversion point that can send shares even higher in September 2025.

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.

The idea behind Kroger Company and The Hain Celestial pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.