Correlation Between Getty Realty and Celsius Holdings

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

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

Diversification Opportunities for Getty Realty and Celsius Holdings

-0.31

Correlation Coefficient

Getty Realty  Celsius Holdings

Very good diversification

The 3 months correlation between Getty and Celsius is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Getty Realty and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings and Getty Realty 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 Getty Realty 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 Getty Realty i.e., Getty Realty and Celsius Holdings go up and down completely randomly.

Pair Corralation between Getty Realty and Celsius Holdings

Considering the 90-day investment horizon Getty Realty is expected to generate 7.19 times less return on investment than Celsius Holdings. But when comparing it to its historical volatility, Getty Realty is 3.52 times less risky than Celsius Holdings. It trades about 0.11 of its potential returns per unit of risk. Celsius Holdings is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  2,693  in Celsius Holdings on September 15, 2024 and sell it today you would earn a total of  486.00  from holding Celsius Holdings or generate 18.05% return on investment over 90 days.

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

Getty Realty  vs.  Celsius Holdings

Getty Realty

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Getty Realty has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Getty Realty is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

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 recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Getty Realty and Celsius Holdings

The main advantage of trading using opposite Getty Realty and Celsius Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Realty 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 Getty Realty 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.