Correlation Between Celsius Holdings and 037833EC0

Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and 037833EC0 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 037833EC0 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Celsius Holdings and AAPL 12 08 FEB 28, you can compare the effects of market volatilities on Celsius Holdings and 037833EC0 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 037833EC0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and 037833EC0.

Diversification Opportunities for Celsius Holdings and 037833EC0

-0.38

Correlation Coefficient

Celsius Holdings  037833EC0

Very good diversification

The 3 months correlation between Celsius and 037833EC0 is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and AAPL 12 08 FEB 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AAPL 12 08 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 037833EC0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AAPL 12 08 has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and 037833EC0 go up and down completely randomly.

Pair Corralation between Celsius Holdings and 037833EC0

Given the investment horizon of 90 days Celsius Holdings is expected to generate 5.84 times more return on investment than 037833EC0. However, Celsius Holdings is 5.84 times more volatile than AAPL 12 08 FEB 28. It trades about 0.1 of its potential returns per unit of risk. AAPL 12 08 FEB 28 is currently generating about -0.04 per unit of risk. If you would invest  2,736  in Celsius Holdings on December 24, 2024 and sell it today you would earn a total of  753.00  from holding Celsius Holdings or generate 27.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Celsius Holdings  vs.  AAPL 12 08 FEB 28

Celsius Holdings

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Celsius Holdings are ranked lower than 7 (%) 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.

AAPL 12 08

Risk-Adjusted Performance

Very Weak

Over the last 90 days AAPL 12 08 FEB 28 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 037833EC0 is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Celsius Holdings and 037833EC0

The main advantage of trading using opposite Celsius Holdings and 037833EC0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, 037833EC0 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 037833EC0 will offset losses from the drop in 037833EC0's long position.

The idea behind Celsius Holdings and AAPL 12 08 FEB 28 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.