Correlation Between Celsius Holdings and ZEEKR Intelligent

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

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

Diversification Opportunities for Celsius Holdings and ZEEKR Intelligent

0.35

Correlation Coefficient

Celsius Holdings  ZEEKR Intelligent

Weak diversification

The 3 months correlation between Celsius and ZEEKR is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and ZEEKR Intelligent Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZEEKR Intelligent 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 ZEEKR Intelligent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZEEKR Intelligent has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and ZEEKR Intelligent go up and down completely randomly.

Pair Corralation between Celsius Holdings and ZEEKR Intelligent

Given the investment horizon of 90 days Celsius Holdings is expected to generate 1.09 times more return on investment than ZEEKR Intelligent. However, Celsius Holdings is 1.09 times more volatile than ZEEKR Intelligent Technology. It trades about 0.08 of its potential returns per unit of risk. ZEEKR Intelligent Technology is currently generating about 0.03 per unit of risk. If you would invest  2,701  in Celsius Holdings on December 20, 2024 and sell it today you would earn a total of  489.00  from holding Celsius Holdings or generate 18.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Celsius Holdings  vs.  ZEEKR Intelligent Technology

Celsius Holdings

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Celsius Holdings are ranked lower than 6 (%) 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.

ZEEKR Intelligent

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ZEEKR Intelligent Technology are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite weak forward-looking signals, ZEEKR Intelligent may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Celsius Holdings and ZEEKR Intelligent

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

The idea behind Celsius Holdings and ZEEKR Intelligent Technology 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.