Correlation Between Celsius Holdings and Highland Surprise

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

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

Diversification Opportunities for Celsius Holdings and Highland Surprise

0.0

Correlation Coefficient

Celsius Holdings  Highland Surprise

Pay attention - limited upside

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

Pair Corralation between Celsius Holdings and Highland Surprise

Given the investment horizon of 90 days Celsius Holdings is expected to generate 2.72 times less return on investment than Highland Surprise. In addition to that, Celsius Holdings is 1.62 times more volatile than Highland Surprise Consolidated. It trades about 0.01 of its total potential returns per unit of risk. Highland Surprise Consolidated is currently generating about 0.04 per unit of volatility. If you would invest  0.02  in Highland Surprise Consolidated on October 11, 2024 and sell it today you would earn a total of  0.01  from holding Highland Surprise Consolidated or generate 50.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Celsius Holdings  vs.  Highland Surprise Consolidated

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 latest unfluctuating performance, the Stock's essential indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Highland Surprise

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Highland Surprise Consolidated has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Highland Surprise is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Celsius Holdings and Highland Surprise

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

The idea behind Celsius Holdings and Highland Surprise Consolidated 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.

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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.