Correlation Between PALT Old and Celsius Holdings

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

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

Diversification Opportunities for PALT Old and Celsius Holdings

0.0

Correlation Coefficient

PALT Old  Celsius Holdings

Pay attention - limited upside

The 3 months correlation between PALT and Celsius is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PALT Old and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings and PALT Old 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 PALT Old 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 PALT Old i.e., PALT Old and Celsius Holdings go up and down completely randomly.

Pair Corralation between PALT Old 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	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

PALT Old  vs.  Celsius Holdings

PALT Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days PALT Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable essential indicators, PALT Old is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private 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 PALT Old and Celsius Holdings

The main advantage of trading using opposite PALT Old and Celsius Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PALT Old 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 PALT Old 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.