Correlation Between Celsius Holdings and Ebara

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Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Ebara 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 Ebara into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Ebara, you can compare the effects of market volatilities on Celsius Holdings and Ebara 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 Ebara. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Ebara.

Diversification Opportunities for Celsius Holdings and Ebara

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  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Celsius Holdings and Ebara

Given the investment horizon of 90 days Celsius Holdings is expected to generate 317.69 times less return on investment than Ebara. But when comparing it to its historical volatility, Celsius Holdings is 17.72 times less risky than Ebara. It trades about 0.01 of its potential returns per unit of risk. Ebara is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  3,593  in Ebara on September 30, 2024 and sell it today you would lose (2,393) from holding Ebara or give up 66.6% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy62.98%
ValuesDaily Returns

Celsius Holdings  vs.  Ebara

 Performance 
       Timeline  
Celsius Holdings 

Risk-Adjusted Performance

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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.
Ebara 

Risk-Adjusted Performance

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Over the last 90 days Ebara has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Ebara is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Celsius Holdings and Ebara Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Celsius Holdings and Ebara

The main advantage of trading using opposite Celsius Holdings and Ebara positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Ebara 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 Ebara will offset losses from the drop in Ebara's long position.
The idea behind Celsius Holdings and Ebara 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.

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