Correlation Between BHCCN and Celsius Holdings

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

By analyzing existing cross correlation between BHCCN 14 15 OCT 30 and Celsius Holdings, you can compare the effects of market volatilities on BHCCN 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 BHCCN with a short position of Celsius Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of BHCCN and Celsius Holdings.

Diversification Opportunities for BHCCN and Celsius Holdings

-0.45

Correlation Coefficient

BHCCN  Celsius Holdings

Very good diversification

The 3 months correlation between BHCCN and Celsius is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding BHCCN 14 15 OCT 30 and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings and BHCCN 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 BHCCN 14 15 OCT 30 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 BHCCN i.e., BHCCN and Celsius Holdings go up and down completely randomly.

Pair Corralation between BHCCN and Celsius Holdings

Assuming the 90 days trading horizon BHCCN 14 15 OCT 30 is expected to generate 0.64 times more return on investment than Celsius Holdings. However, BHCCN 14 15 OCT 30 is 1.55 times less risky than Celsius Holdings. It trades about 0.06 of its potential returns per unit of risk. Celsius Holdings is currently generating about 0.01 per unit of risk. If you would invest  5,944  in BHCCN 14 15 OCT 30 on September 23, 2024 and sell it today you would earn a total of  1,924  from holding BHCCN 14 15 OCT 30 or generate 32.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	52.11%
Values	Daily Returns

BHCCN 14 15 OCT 30  vs.  Celsius Holdings

BHCCN 14 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BHCCN 14 15 OCT 30 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for BHCCN 14 15 OCT 30 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 unfluctuating performance in the last few months, the Stock's essential indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with BHCCN and Celsius Holdings

The main advantage of trading using opposite BHCCN and Celsius Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BHCCN 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 BHCCN 14 15 OCT 30 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.