Correlation Between Celsius Holdings and Addus HomeCare
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Addus HomeCare 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 Celsius Holdings and Addus HomeCare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Addus HomeCare, you can compare the effects of market volatilities on Celsius Holdings and Addus HomeCare 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 Celsius Holdings with a short position of Addus HomeCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Addus HomeCare.
Diversification Opportunities for Celsius Holdings and Addus HomeCare
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Celsius and Addus is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Addus HomeCare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Addus HomeCare and Celsius 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 Celsius Holdings are associated (or correlated) with Addus HomeCare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Addus HomeCare has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Addus HomeCare go up and down completely randomly.
Pair Corralation between Celsius Holdings and Addus HomeCare
Given the investment horizon of 90 days Celsius Holdings is expected to generate 3.36 times more return on investment than Addus HomeCare. However, Celsius Holdings is 3.36 times more volatile than Addus HomeCare. It trades about 0.09 of its potential returns per unit of risk. Addus HomeCare is currently generating about -0.55 per unit of risk. If you would invest 2,376 in Celsius Holdings on December 5, 2024 and sell it today you would earn a total of 214.00 from holding Celsius Holdings or generate 9.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Celsius Holdings vs. Addus HomeCare
Performance |
Timeline |
Celsius Holdings |
Addus HomeCare |
Celsius Holdings and Addus HomeCare Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Celsius Holdings and Addus HomeCare
The main advantage of trading using opposite Celsius Holdings and Addus HomeCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Addus HomeCare 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 Addus HomeCare will offset losses from the drop in Addus HomeCare's long position.Celsius Holdings vs. Vita Coco | Celsius Holdings vs. Keurig Dr Pepper | Celsius Holdings vs. PepsiCo | Celsius Holdings vs. Coca Cola Femsa SAB |
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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 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.
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