Correlation Between Celsius Holdings and Galaxy Gaming

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

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

Diversification Opportunities for Celsius Holdings and Galaxy Gaming

-0.07

Correlation Coefficient

Celsius Holdings  Galaxy Gaming

Good diversification

The 3 months correlation between Celsius and Galaxy is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Galaxy Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galaxy Gaming 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 Galaxy Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galaxy Gaming has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Galaxy Gaming go up and down completely randomly.

Pair Corralation between Celsius Holdings and Galaxy Gaming

Given the investment horizon of 90 days Celsius Holdings is expected to generate 6.8 times more return on investment than Galaxy Gaming. However, Celsius Holdings is 6.8 times more volatile than Galaxy Gaming. It trades about 0.08 of its potential returns per unit of risk. Galaxy Gaming is currently generating about 0.06 per unit of risk. If you would invest  2,701  in Celsius Holdings on December 20, 2024 and sell it today you would earn a total of  489.00  from holding Celsius Holdings or generate 18.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Celsius Holdings  vs.  Galaxy Gaming

Celsius Holdings

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Celsius Holdings are ranked lower than 5 (%) 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.

Galaxy Gaming

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Galaxy Gaming are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Galaxy Gaming is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Celsius Holdings and Galaxy Gaming

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

The idea behind Celsius Holdings and Galaxy Gaming 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.