Correlation Between Celsius Holdings and Anterix

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

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

Diversification Opportunities for Celsius Holdings and Anterix

0.31

Correlation Coefficient

Celsius Holdings  Anterix

Weak diversification

The 3 months correlation between Celsius and Anterix is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Anterix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anterix and Celsius Holdings 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 Celsius Holdings are associated (or correlated) with Anterix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anterix has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Anterix go up and down completely randomly.

Pair Corralation between Celsius Holdings and Anterix

Given the investment horizon of 90 days Celsius Holdings is expected to generate 1.73 times more return on investment than Anterix. However, Celsius Holdings is 1.73 times more volatile than Anterix. It trades about -0.01 of its potential returns per unit of risk. Anterix is currently generating about -0.15 per unit of risk. If you would invest  2,771  in Celsius Holdings on September 21, 2024 and sell it today you would lose (62.00) from holding Celsius Holdings or give up 2.24% of portfolio value over 90 days.

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

Celsius Holdings  vs.  Anterix

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.

Anterix

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anterix has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's technical and fundamental indicators remain fairly 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 the company investors.

Pair Trading with Celsius Holdings and Anterix

The main advantage of trading using opposite Celsius Holdings and Anterix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Anterix 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 Anterix will offset losses from the drop in Anterix's long position.

The idea behind Celsius Holdings and Anterix 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.