Correlation Between Celsius Holdings and Oaktree Acquisition

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

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

Diversification Opportunities for Celsius Holdings and Oaktree Acquisition

0.0

Correlation Coefficient

Celsius Holdings  Oaktree Acquisition

Pay attention - limited upside

The 3 months correlation between Celsius and Oaktree is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Oaktree Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oaktree Acquisition Corp 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 Oaktree Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oaktree Acquisition Corp has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Oaktree Acquisition go up and down completely randomly.

Pair Corralation between Celsius Holdings and Oaktree Acquisition

If you would invest (100.00) in Oaktree Acquisition Corp on October 11, 2024 and sell it today you would earn a total of  100.00  from holding Oaktree Acquisition Corp or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Celsius Holdings  vs.  Oaktree Acquisition Corp

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 latest unfluctuating performance, the Stock's essential indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Oaktree Acquisition Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Oaktree Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Oaktree Acquisition is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Celsius Holdings and Oaktree Acquisition

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

The idea behind Celsius Holdings and Oaktree Acquisition Corp 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.

Check out your portfolio center.

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 Stocks Directory module to find actively traded stocks across global markets.