Correlation Between Marimaca Copper and Celsius Holdings

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

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

Diversification Opportunities for Marimaca Copper and Celsius Holdings

-0.54

Correlation Coefficient

Marimaca Copper  Celsius Holdings

Excellent diversification

The 3 months correlation between Marimaca and Celsius is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Marimaca Copper Corp and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings and Marimaca Copper 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 Marimaca Copper Corp 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 Marimaca Copper i.e., Marimaca Copper and Celsius Holdings go up and down completely randomly.

Pair Corralation between Marimaca Copper and Celsius Holdings

Assuming the 90 days horizon Marimaca Copper Corp is expected to generate 1.26 times more return on investment than Celsius Holdings. However, Marimaca Copper is 1.26 times more volatile than Celsius Holdings. It trades about 0.32 of its potential returns per unit of risk. Celsius Holdings is currently generating about -0.14 per unit of risk. If you would invest  311.00  in Marimaca Copper Corp on October 26, 2024 and sell it today you would earn a total of  79.00  from holding Marimaca Copper Corp or generate 25.4% return on investment over 90 days.

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

Marimaca Copper Corp  vs.  Celsius Holdings

Marimaca Copper Corp

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Marimaca Copper Corp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak forward indicators, Marimaca Copper reported 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 weak performance in the last few months, the Stock's essential indicators remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Marimaca Copper and Celsius Holdings

The main advantage of trading using opposite Marimaca Copper and Celsius Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marimaca Copper 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 Marimaca Copper Corp 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.