Correlation Between Cabal Communications and Celsius Holdings

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

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

Diversification Opportunities for Cabal Communications and Celsius Holdings

0.0

Correlation Coefficient

Cabal Communications  Celsius Holdings

Pay attention - limited upside

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

Pair Corralation between Cabal Communications and Celsius Holdings

If you would invest  2,789  in Celsius Holdings on October 6, 2024 and sell it today you would earn a total of  91.00  from holding Celsius Holdings or generate 3.26% return on investment over 90 days.

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

Cabal Communications  vs.  Celsius Holdings

Cabal Communications

Risk-Adjusted Performance

0 of 100

Very Weak

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

Celsius Holdings

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Celsius Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong essential indicators, Celsius Holdings is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Cabal Communications and Celsius Holdings

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

The idea behind Cabal Communications and Celsius Holdings 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.