Correlation Between Celsius Holdings and Flow Beverage

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

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

Diversification Opportunities for Celsius Holdings and Flow Beverage

0.0

Correlation Coefficient

Celsius Holdings  Flow Beverage

Pay attention - limited upside

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

Pair Corralation between Celsius Holdings and Flow Beverage

Given the investment horizon of 90 days Celsius Holdings is expected to generate 0.58 times more return on investment than Flow Beverage. However, Celsius Holdings is 1.72 times less risky than Flow Beverage. It trades about 0.09 of its potential returns per unit of risk. Flow Beverage Corp is currently generating about 0.01 per unit of risk. If you would invest  2,675  in Celsius Holdings on December 22, 2024 and sell it today you would earn a total of  618.00  from holding Celsius Holdings or generate 23.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Celsius Holdings  vs.  Flow Beverage Corp

Celsius Holdings

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Celsius Holdings are ranked lower than 6 (%) 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.

Flow Beverage Corp

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Celsius Holdings and Flow Beverage

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

The idea behind Celsius Holdings and Flow Beverage Corp 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.