Correlation Between Nascent Wine and Celsius Holdings

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

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

Diversification Opportunities for Nascent Wine and Celsius Holdings

-0.27

Correlation Coefficient

Nascent Wine  Celsius Holdings

Very good diversification

The 3 months correlation between Nascent and Celsius is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Nascent Wine and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings and Nascent Wine 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 Nascent Wine 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 Nascent Wine i.e., Nascent Wine and Celsius Holdings go up and down completely randomly.

Pair Corralation between Nascent Wine and Celsius Holdings

If you would invest  2,585  in Celsius Holdings on December 28, 2024 and sell it today you would earn a total of  780.00  from holding Celsius Holdings or generate 30.17% return on investment over 90 days.

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

Nascent Wine  vs.  Celsius Holdings

Nascent Wine

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nascent Wine has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Nascent Wine is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Celsius Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Celsius Holdings are ranked lower than 8 (%) 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.

Pair Trading with Nascent Wine and Celsius Holdings

The main advantage of trading using opposite Nascent Wine and Celsius Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nascent Wine 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 Nascent Wine 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.