Correlation Between Celsius Holdings and Chicago Atlantic

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

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

Diversification Opportunities for Celsius Holdings and Chicago Atlantic

0.53

Correlation Coefficient

Celsius Holdings  Chicago Atlantic

Very weak diversification

The 3 months correlation between Celsius and Chicago is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Chicago Atlantic BDC, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chicago Atlantic BDC, 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 Chicago Atlantic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chicago Atlantic BDC, has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Chicago Atlantic go up and down completely randomly.

Pair Corralation between Celsius Holdings and Chicago Atlantic

Given the investment horizon of 90 days Celsius Holdings is expected to generate 4.62 times less return on investment than Chicago Atlantic. In addition to that, Celsius Holdings is 1.85 times more volatile than Chicago Atlantic BDC,. It trades about 0.01 of its total potential returns per unit of risk. Chicago Atlantic BDC, is currently generating about 0.05 per unit of volatility. If you would invest  720.00  in Chicago Atlantic BDC, on October 25, 2024 and sell it today you would earn a total of  380.00  from holding Chicago Atlantic BDC, or generate 52.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	99.8%
Values	Daily Returns

Celsius Holdings  vs.  Chicago Atlantic BDC,

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 unfluctuating 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.

Chicago Atlantic BDC,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Chicago Atlantic BDC, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Celsius Holdings and Chicago Atlantic

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

The idea behind Celsius Holdings and Chicago Atlantic BDC, 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.