Correlation Between Aegon NV and Celsius Holdings

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Can any of the company-specific risk be diversified away by investing in both Aegon NV and Celsius Holdings 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 Aegon NV and Celsius Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aegon NV ADR and Celsius Holdings, you can compare the effects of market volatilities on Aegon NV and Celsius Holdings 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 Aegon NV with a short position of Celsius Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegon NV and Celsius Holdings.

Diversification Opportunities for Aegon NV and Celsius Holdings

AegonCelsiusDiversified AwayAegonCelsiusDiversified Away100%
0.34
  Correlation Coefficient

Weak diversification

The 3 months correlation between Aegon and Celsius is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Aegon NV ADR and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings and Aegon NV 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 Aegon NV ADR are associated (or correlated) with Celsius Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celsius Holdings has no effect on the direction of Aegon NV i.e., Aegon NV and Celsius Holdings go up and down completely randomly.

Pair Corralation between Aegon NV and Celsius Holdings

Considering the 90-day investment horizon Aegon NV ADR is expected to generate 0.42 times more return on investment than Celsius Holdings. However, Aegon NV ADR is 2.38 times less risky than Celsius Holdings. It trades about -0.05 of its potential returns per unit of risk. Celsius Holdings is currently generating about -0.09 per unit of risk. If you would invest  624.00  in Aegon NV ADR on October 15, 2024 and sell it today you would lose (30.00) from holding Aegon NV ADR or give up 4.81% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Aegon NV ADR  vs.  Celsius Holdings

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -10-505101520
JavaScript chart by amCharts 3.21.15AEG CELH
       Timeline  
Aegon NV ADR 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Aegon NV ADR has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Aegon NV is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan5.866.26.46.66.8
Celsius Holdings 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Celsius Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's essential indicators remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan262830323436

Aegon NV and Celsius Holdings Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-2.36-1.78-1.2-0.62-0.04920.491.071.652.232.81 0.050.100.15
JavaScript chart by amCharts 3.21.15AEG CELH
       Returns  

Pair Trading with Aegon NV and Celsius Holdings

The main advantage of trading using opposite Aegon NV and Celsius Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegon NV position performs unexpectedly, Celsius Holdings 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 Celsius Holdings will offset losses from the drop in Celsius Holdings' long position.
The idea behind Aegon NV ADR and Celsius Holdings 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

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