Correlation Between Celsius Holdings and EPR Properties

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

By analyzing existing cross correlation between Celsius Holdings and EPR Properties 5750, you can compare the effects of market volatilities on Celsius Holdings and EPR Properties 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 EPR Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and EPR Properties.

Diversification Opportunities for Celsius Holdings and EPR Properties

0.48

Correlation Coefficient

Celsius Holdings  EPR Properties

Very weak diversification

The 3 months correlation between Celsius and EPR is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and EPR Properties 5750 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EPR Properties 5750 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 EPR Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EPR Properties 5750 has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and EPR Properties go up and down completely randomly.

Pair Corralation between Celsius Holdings and EPR Properties

Given the investment horizon of 90 days Celsius Holdings is expected to generate 3.38 times less return on investment than EPR Properties. In addition to that, Celsius Holdings is 3.05 times more volatile than EPR Properties 5750. It trades about 0.0 of its total potential returns per unit of risk. EPR Properties 5750 is currently generating about 0.01 per unit of volatility. If you would invest  1,876  in EPR Properties 5750 on October 4, 2024 and sell it today you would earn a total of  99.00  from holding EPR Properties 5750 or generate 5.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	99.8%
Values	Daily Returns

Celsius Holdings  vs.  EPR Properties 5750

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 recent stock price confusion, may contribute to short-horizon losses for the traders.

EPR Properties 5750

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days EPR Properties 5750 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Preferred Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Celsius Holdings and EPR Properties

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

The idea behind Celsius Holdings and EPR Properties 5750 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.