Correlation Between Celsius Holdings and Capitalworks Emerging

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

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

Diversification Opportunities for Celsius Holdings and Capitalworks Emerging

-0.19

Correlation Coefficient

Celsius Holdings  Capitalworks Emerging

Good diversification

The 3 months correlation between Celsius and Capitalworks is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Capitalworks Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capitalworks Emerging 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 Capitalworks Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capitalworks Emerging has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Capitalworks Emerging go up and down completely randomly.

Pair Corralation between Celsius Holdings and Capitalworks Emerging

If you would invest  2,579  in Celsius Holdings on September 18, 2024 and sell it today you would earn a total of  515.00  from holding Celsius Holdings or generate 19.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	5.0%
Values	Daily Returns

Celsius Holdings  vs.  Capitalworks Emerging Markets

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 fairly strong essential indicators, Celsius Holdings is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Capitalworks Emerging

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Capitalworks Emerging Markets has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Capitalworks Emerging is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Celsius Holdings and Capitalworks Emerging

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

The idea behind Celsius Holdings and Capitalworks Emerging Markets 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.