Correlation Between Celsius Holdings and Associates First

Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Associates First 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 Associates First into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Celsius Holdings and Associates First Capital, you can compare the effects of market volatilities on Celsius Holdings and Associates First 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 Associates First. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Associates First.

Diversification Opportunities for Celsius Holdings and Associates First

0.0

Correlation Coefficient

Celsius Holdings  Associates First

Pay attention - limited upside

The 3 months correlation between Celsius and Associates is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Associates First Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Associates First Capital 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 Associates First. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Associates First Capital has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Associates First go up and down completely randomly.

Pair Corralation between Celsius Holdings and Associates First

If you would invest  2,675  in Celsius Holdings on December 21, 2024 and sell it today you would earn a total of  450.00  from holding Celsius Holdings or generate 16.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Celsius Holdings  vs.  Associates First Capital

Celsius Holdings

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Celsius Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating essential indicators, Celsius Holdings demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Associates First Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Associates First Capital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, Associates First is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Celsius Holdings and Associates First

The main advantage of trading using opposite Celsius Holdings and Associates First positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Associates First 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 Associates First will offset losses from the drop in Associates First's long position.

The idea behind Celsius Holdings and Associates First Capital 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.