Correlation Between 694308KB2 and Celsius Holdings

Can any of the company-specific risk be diversified away by investing in both 694308KB2 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 694308KB2 and Celsius Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PCG 42 01 MAR 29 and Celsius Holdings, you can compare the effects of market volatilities on 694308KB2 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 694308KB2 with a short position of Celsius Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of 694308KB2 and Celsius Holdings.

Diversification Opportunities for 694308KB2 and Celsius Holdings

0.46

Correlation Coefficient

694308KB2  Celsius Holdings

Very weak diversification

The 3 months correlation between 694308KB2 and Celsius is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding PCG 42 01 MAR 29 and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings and 694308KB2 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 PCG 42 01 MAR 29 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 694308KB2 i.e., 694308KB2 and Celsius Holdings go up and down completely randomly.

Pair Corralation between 694308KB2 and Celsius Holdings

Assuming the 90 days trading horizon PCG 42 01 MAR 29 is expected to generate 0.2 times more return on investment than Celsius Holdings. However, PCG 42 01 MAR 29 is 5.08 times less risky than Celsius Holdings. It trades about 0.02 of its potential returns per unit of risk. Celsius Holdings is currently generating about -0.06 per unit of risk. If you would invest  9,708  in PCG 42 01 MAR 29 on October 22, 2024 and sell it today you would earn a total of  59.00  from holding PCG 42 01 MAR 29 or generate 0.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	75.81%
Values	Daily Returns

PCG 42 01 MAR 29  vs.  Celsius Holdings

PCG 42 01

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in PCG 42 01 MAR 29 are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 694308KB2 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 unfluctuating 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 694308KB2 and Celsius Holdings

The main advantage of trading using opposite 694308KB2 and Celsius Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 694308KB2 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 PCG 42 01 MAR 29 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.