Correlation Between Celsius Holdings and Greene Concepts

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

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

Diversification Opportunities for Celsius Holdings and Greene Concepts

-0.35

Correlation Coefficient

Celsius Holdings  Greene Concepts

Very good diversification

The 3 months correlation between Celsius and Greene is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Greene Concepts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greene Concepts 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 Greene Concepts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greene Concepts has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Greene Concepts go up and down completely randomly.

Pair Corralation between Celsius Holdings and Greene Concepts

Given the investment horizon of 90 days Celsius Holdings is expected to generate 4.18 times less return on investment than Greene Concepts. But when comparing it to its historical volatility, Celsius Holdings is 2.22 times less risky than Greene Concepts. It trades about 0.07 of its potential returns per unit of risk. Greene Concepts is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  0.10  in Greene Concepts on December 21, 2024 and sell it today you would earn a total of  0.08  from holding Greene Concepts or generate 80.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Celsius Holdings  vs.  Greene Concepts

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.

Greene Concepts

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Greene Concepts are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak forward-looking signals, Greene Concepts showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Celsius Holdings and Greene Concepts

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

The idea behind Celsius Holdings and Greene Concepts 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.