Correlation Between Celsius Holdings and V

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

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

Diversification Opportunities for Celsius Holdings and V

0.0

Correlation Coefficient

Celsius Holdings  V

Pay attention - limited upside

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

Pair Corralation between Celsius Holdings and V

Given the investment horizon of 90 days Celsius Holdings is expected to generate 0.18 times more return on investment than V. However, Celsius Holdings is 5.43 times less risky than V. It trades about -0.11 of its potential returns per unit of risk. V Group is currently generating about -0.22 per unit of risk. If you would invest  2,975  in Celsius Holdings on September 24, 2024 and sell it today you would lose (300.00) from holding Celsius Holdings or give up 10.08% of portfolio value over 90 days.

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

Celsius Holdings  vs.  V Group

Celsius Holdings

Risk-Adjusted Performance

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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.

V Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days V Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's forward indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Celsius Holdings and V

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

The idea behind Celsius Holdings and V Group 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 Commodity Directory module to find actively traded commodities issued by global exchanges.