Correlation Between Celsius Holdings and Collective Mining

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

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

Diversification Opportunities for Celsius Holdings and Collective Mining

0.05

Correlation Coefficient

Celsius Holdings  Collective Mining

Significant diversification

The 3 months correlation between Celsius and Collective is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Collective Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Collective Mining 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 Collective Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Collective Mining has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Collective Mining go up and down completely randomly.

Pair Corralation between Celsius Holdings and Collective Mining

Given the investment horizon of 90 days Celsius Holdings is expected to generate 3.99 times less return on investment than Collective Mining. In addition to that, Celsius Holdings is 1.57 times more volatile than Collective Mining. It trades about 0.07 of its total potential returns per unit of risk. Collective Mining is currently generating about 0.45 per unit of volatility. If you would invest  414.00  in Collective Mining on December 21, 2024 and sell it today you would earn a total of  618.00  from holding Collective Mining or generate 149.28% 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.  Collective Mining

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.

Collective Mining

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Collective Mining are ranked lower than 35 (%) of all global equities and portfolios over the last 90 days. Despite quite abnormal basic indicators, Collective Mining disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Celsius Holdings and Collective Mining

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

The idea behind Celsius Holdings and Collective Mining 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.

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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.