Correlation Between Celsius Holdings and Fbec Worldwide

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

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

Diversification Opportunities for Celsius Holdings and Fbec Worldwide

0.56

Correlation Coefficient

Celsius Holdings  Fbec Worldwide

Very weak diversification

The 3 months correlation between Celsius and Fbec is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Fbec Worldwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fbec Worldwide 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 Fbec Worldwide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fbec Worldwide has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Fbec Worldwide go up and down completely randomly.

Pair Corralation between Celsius Holdings and Fbec Worldwide

Given the investment horizon of 90 days Celsius Holdings is expected to under-perform the Fbec Worldwide. But the stock apears to be less risky and, when comparing its historical volatility, Celsius Holdings is 12.19 times less risky than Fbec Worldwide. The stock trades about -0.01 of its potential returns per unit of risk. The Fbec Worldwide is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  0.07  in Fbec Worldwide on December 2, 2024 and sell it today you would lose (0.02) from holding Fbec Worldwide or give up 28.57% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	96.83%
Values	Daily Returns

Celsius Holdings  vs.  Fbec Worldwide

Celsius Holdings

Risk-Adjusted Performance

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.

Fbec Worldwide

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fbec Worldwide are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile technical and fundamental indicators, Fbec Worldwide exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Celsius Holdings and Fbec Worldwide

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

The idea behind Celsius Holdings and Fbec Worldwide 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.