Correlation Between Celsius Holdings and Ebara
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
0.0 | 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 Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 62.98% |
Values | Daily Returns |
Celsius Holdings vs. Ebara
Performance |
Timeline |
Celsius Holdings |
Ebara |
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.Celsius Holdings vs. Vita Coco | Celsius Holdings vs. Keurig Dr Pepper | Celsius Holdings vs. PepsiCo | Celsius Holdings vs. Coca Cola Femsa SAB |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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