Correlation Between 200339EX3 and Celsius Holdings

Can any of the company-specific risk be diversified away by investing in both 200339EX3 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 200339EX3 and Celsius Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CMA 5332 25 AUG 33 and Celsius Holdings, you can compare the effects of market volatilities on 200339EX3 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 200339EX3 with a short position of Celsius Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of 200339EX3 and Celsius Holdings.

Diversification Opportunities for 200339EX3 and Celsius Holdings

-0.35

Correlation Coefficient

200339EX3  Celsius Holdings

Very good diversification

The 3 months correlation between 200339EX3 and Celsius is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding CMA 5332 25 AUG 33 and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings and 200339EX3 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 CMA 5332 25 AUG 33 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 200339EX3 i.e., 200339EX3 and Celsius Holdings go up and down completely randomly.

Pair Corralation between 200339EX3 and Celsius Holdings

Assuming the 90 days trading horizon CMA 5332 25 AUG 33 is expected to generate 0.44 times more return on investment than Celsius Holdings. However, CMA 5332 25 AUG 33 is 2.25 times less risky than Celsius Holdings. It trades about -0.04 of its potential returns per unit of risk. Celsius Holdings is currently generating about -0.02 per unit of risk. If you would invest  9,428  in CMA 5332 25 AUG 33 on September 12, 2024 and sell it today you would lose (227.00) from holding CMA 5332 25 AUG 33 or give up 2.41% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	48.44%
Values	Daily Returns

CMA 5332 25 AUG 33  vs.  Celsius Holdings

CMA 5332 25

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CMA 5332 25 AUG 33 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 200339EX3 is not utilizing all of its potentials. The current 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 200339EX3 and Celsius Holdings

The main advantage of trading using opposite 200339EX3 and Celsius Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 200339EX3 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 CMA 5332 25 AUG 33 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.