Correlation Between Celsius Holdings and YHN Acquisition
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and YHN 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 YHN 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 YHN Acquisition I, you can compare the effects of market volatilities on Celsius Holdings and YHN 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 YHN Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and YHN Acquisition.
Diversification Opportunities for Celsius Holdings and YHN Acquisition
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Celsius and YHN is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and YHN Acquisition I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YHN Acquisition I 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 YHN Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YHN Acquisition I has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and YHN Acquisition go up and down completely randomly.
Pair Corralation between Celsius Holdings and YHN Acquisition
Given the investment horizon of 90 days Celsius Holdings is expected to generate 15.77 times more return on investment than YHN Acquisition. However, Celsius Holdings is 15.77 times more volatile than YHN Acquisition I. It trades about 0.09 of its potential returns per unit of risk. YHN Acquisition I is currently generating about -0.23 per unit of risk. If you would invest 2,376 in Celsius Holdings on December 5, 2024 and sell it today you would earn a total of 214.00 from holding Celsius Holdings or generate 9.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 38.1% |
Values | Daily Returns |
Celsius Holdings vs. YHN Acquisition I
Performance |
Timeline |
Celsius Holdings |
YHN Acquisition I |
Risk-Adjusted Performance
Weak
Weak | Strong |
Celsius Holdings and YHN Acquisition Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Celsius Holdings and YHN Acquisition
The main advantage of trading using opposite Celsius Holdings and YHN Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, YHN 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 YHN Acquisition will offset losses from the drop in YHN Acquisition's long position.Celsius Holdings vs. Vita Coco | Celsius Holdings vs. Keurig Dr Pepper | Celsius Holdings vs. PepsiCo | Celsius Holdings vs. Coca Cola Femsa SAB |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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