Correlation Between Celsius Holdings and Ituran Location

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

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

Diversification Opportunities for Celsius Holdings and Ituran Location

-0.4

Correlation Coefficient

Celsius Holdings  Ituran Location

Very good diversification

The 3 months correlation between Celsius and Ituran is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Ituran Location and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ituran Location 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 Ituran Location. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ituran Location has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Ituran Location go up and down completely randomly.

Pair Corralation between Celsius Holdings and Ituran Location

Given the investment horizon of 90 days Celsius Holdings is expected to generate 3.85 times less return on investment than Ituran Location. In addition to that, Celsius Holdings is 2.26 times more volatile than Ituran Location and. It trades about 0.01 of its total potential returns per unit of risk. Ituran Location and is currently generating about 0.07 per unit of volatility. If you would invest  2,024  in Ituran Location and on October 5, 2024 and sell it today you would earn a total of  1,123  from holding Ituran Location and or generate 55.48% return on investment over 90 days.

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

Celsius Holdings  vs.  Ituran Location and

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 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.

Ituran Location

Risk-Adjusted Performance

15 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ituran Location and are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, Ituran Location displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Celsius Holdings and Ituran Location

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

The idea behind Celsius Holdings and Ituran Location and 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.