Correlation Between Celsius Holdings and Coeur DAlene

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

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

Diversification Opportunities for Celsius Holdings and Coeur DAlene

-0.62

Correlation Coefficient

Celsius Holdings  Coeur DAlene

Excellent diversification

The 3 months correlation between Celsius and Coeur is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Coeur dAlene Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur dAlene Bancorp 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 Coeur DAlene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coeur dAlene Bancorp has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Coeur DAlene go up and down completely randomly.

Pair Corralation between Celsius Holdings and Coeur DAlene

Given the investment horizon of 90 days Celsius Holdings is expected to generate 71.94 times more return on investment than Coeur DAlene. However, Celsius Holdings is 71.94 times more volatile than Coeur dAlene Bancorp. It trades about 0.02 of its potential returns per unit of risk. Coeur dAlene Bancorp is currently generating about 0.21 per unit of risk. If you would invest  2,760  in Celsius Holdings on September 27, 2024 and sell it today you would earn a total of  8.00  from holding Celsius Holdings or generate 0.29% return on investment over 90 days.

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

Celsius Holdings  vs.  Coeur dAlene Bancorp

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 latest unfluctuating performance, the Stock's essential indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Coeur dAlene Bancorp

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Coeur dAlene Bancorp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Coeur DAlene may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Celsius Holdings and Coeur DAlene

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

The idea behind Celsius Holdings and Coeur dAlene Bancorp 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 Transaction History module to view history of all your transactions and understand their impact on performance.