Correlation Between Celsius Holdings and JPM P

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

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

Diversification Opportunities for Celsius Holdings and JPM P

0.06

Correlation Coefficient

Celsius Holdings  JPM P

Significant diversification

The 3 months correlation between Celsius and JPM is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and JPM P J in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPM P J 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 JPM P. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPM P J has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and JPM P go up and down completely randomly.

Pair Corralation between Celsius Holdings and JPM P

Given the investment horizon of 90 days Celsius Holdings is expected to generate 5.76 times more return on investment than JPM P. However, Celsius Holdings is 5.76 times more volatile than JPM P J. It trades about 0.07 of its potential returns per unit of risk. JPM P J is currently generating about 0.02 per unit of risk. If you would invest  2,675  in Celsius Holdings on December 21, 2024 and sell it today you would earn a total of  450.00  from holding Celsius Holdings or generate 16.82% return on investment over 90 days.

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

Celsius Holdings  vs.  JPM P J

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.

JPM P J

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in JPM P J are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively steady forward-looking indicators, JPM P is not utilizing all of its potentials. The latest stock price chaos, may contribute to medium-term losses for the stakeholders.

Pair Trading with Celsius Holdings and JPM P

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

The idea behind Celsius Holdings and JPM P J 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.