Correlation Between Celsius Holdings and Brandywine Realty

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

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

Diversification Opportunities for Celsius Holdings and Brandywine Realty

0.33

Correlation Coefficient

Celsius Holdings  Brandywine Realty

Weak diversification

The 3 months correlation between Celsius and Brandywine is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Brandywine Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brandywine Realty Trust 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 Brandywine Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brandywine Realty Trust has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Brandywine Realty go up and down completely randomly.

Pair Corralation between Celsius Holdings and Brandywine Realty

Given the investment horizon of 90 days Celsius Holdings is expected to under-perform the Brandywine Realty. In addition to that, Celsius Holdings is 1.56 times more volatile than Brandywine Realty Trust. It trades about -0.04 of its total potential returns per unit of risk. Brandywine Realty Trust is currently generating about 0.06 per unit of volatility. If you would invest  383.00  in Brandywine Realty Trust on September 23, 2024 and sell it today you would earn a total of  156.00  from holding Brandywine Realty Trust or generate 40.73% return on investment over 90 days.

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

Celsius Holdings  vs.  Brandywine Realty Trust

Celsius Holdings

Risk-Adjusted Performance

0 of 100

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 January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Brandywine Realty Trust

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Brandywine Realty Trust are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent fundamental indicators, Brandywine Realty may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Celsius Holdings and Brandywine Realty

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

The idea behind Celsius Holdings and Brandywine Realty Trust 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.