Correlation Between Elicio Therapeutics and Celsius Holdings

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

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

Diversification Opportunities for Elicio Therapeutics and Celsius Holdings

-0.44

Correlation Coefficient

Elicio Therapeutics  Celsius Holdings

Very good diversification

The 3 months correlation between Elicio and Celsius is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Elicio Therapeutics and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings and Elicio Therapeutics 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 Elicio Therapeutics 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 Elicio Therapeutics i.e., Elicio Therapeutics and Celsius Holdings go up and down completely randomly.

Pair Corralation between Elicio Therapeutics and Celsius Holdings

Given the investment horizon of 90 days Elicio Therapeutics is expected to under-perform the Celsius Holdings. In addition to that, Elicio Therapeutics is 1.27 times more volatile than Celsius Holdings. It trades about -0.02 of its total potential returns per unit of risk. Celsius Holdings is currently generating about 0.3 per unit of volatility. If you would invest  2,579  in Celsius Holdings on September 17, 2024 and sell it today you would earn a total of  600.00  from holding Celsius Holdings or generate 23.26% return on investment over 90 days.

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

Elicio Therapeutics  vs.  Celsius Holdings

Elicio Therapeutics

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Elicio Therapeutics are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent basic indicators, Elicio Therapeutics showed solid returns over the last few months and may actually be approaching a breakup point.

Celsius Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Celsius Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong essential indicators, Celsius Holdings is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Elicio Therapeutics and Celsius Holdings

The main advantage of trading using opposite Elicio Therapeutics and Celsius Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elicio Therapeutics 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 Elicio Therapeutics 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.

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.