Correlation Between Celsius Holdings and Jayud Global

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

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

Diversification Opportunities for Celsius Holdings and Jayud Global

-0.49

Correlation Coefficient

Celsius Holdings  Jayud Global

Very good diversification

The 3 months correlation between Celsius and Jayud is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Jayud Global Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jayud Global Logistics 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 Jayud Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jayud Global Logistics has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Jayud Global go up and down completely randomly.

Pair Corralation between Celsius Holdings and Jayud Global

Given the investment horizon of 90 days Celsius Holdings is expected to under-perform the Jayud Global. But the stock apears to be less risky and, when comparing its historical volatility, Celsius Holdings is 4.63 times less risky than Jayud Global. The stock trades about -0.09 of its potential returns per unit of risk. The Jayud Global Logistics is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  88.00  in Jayud Global Logistics on October 26, 2024 and sell it today you would earn a total of  264.00  from holding Jayud Global Logistics or generate 300.0% 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.  Jayud Global Logistics

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 weak performance in the last few months, the Stock's essential indicators remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Jayud Global Logistics

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Jayud Global Logistics are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent basic indicators, Jayud Global exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Celsius Holdings and Jayud Global

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

The idea behind Celsius Holdings and Jayud Global Logistics 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.