Correlation Between Vast Renewables and Celsius Holdings

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

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

Diversification Opportunities for Vast Renewables and Celsius Holdings

0.29

Correlation Coefficient

Vast Renewables  Celsius Holdings

Modest diversification

The 3 months correlation between Vast and Celsius is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Vast Renewables Limited and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings and Vast Renewables 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 Vast Renewables Limited 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 Vast Renewables i.e., Vast Renewables and Celsius Holdings go up and down completely randomly.

Pair Corralation between Vast Renewables and Celsius Holdings

Given the investment horizon of 90 days Vast Renewables Limited is expected to under-perform the Celsius Holdings. In addition to that, Vast Renewables is 1.28 times more volatile than Celsius Holdings. It trades about -0.25 of its total potential returns per unit of risk. Celsius Holdings is currently generating about 0.05 per unit of volatility. If you would invest  2,794  in Celsius Holdings on December 19, 2024 and sell it today you would earn a total of  243.00  from holding Celsius Holdings or generate 8.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Vast Renewables Limited  vs.  Celsius Holdings

Vast Renewables

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vast Renewables Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Celsius Holdings

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Celsius Holdings are ranked lower than 3 (%) 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 Vast Renewables and Celsius Holdings

The main advantage of trading using opposite Vast Renewables and Celsius Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vast Renewables 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 Vast Renewables Limited 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.