Correlation Between Celsius Holdings and Evertz Technologies

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

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

Diversification Opportunities for Celsius Holdings and Evertz Technologies

0.31

Correlation Coefficient

Celsius Holdings  Evertz Technologies

Weak diversification

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

Pair Corralation between Celsius Holdings and Evertz Technologies

Given the investment horizon of 90 days Celsius Holdings is expected to under-perform the Evertz Technologies. In addition to that, Celsius Holdings is 4.12 times more volatile than Evertz Technologies Limited. It trades about -0.05 of its total potential returns per unit of risk. Evertz Technologies Limited is currently generating about -0.05 per unit of volatility. If you would invest  872.00  in Evertz Technologies Limited on September 29, 2024 and sell it today you would lose (28.00) from holding Evertz Technologies Limited or give up 3.21% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Celsius Holdings  vs.  Evertz Technologies Limited

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 latest unfluctuating performance, the Stock's essential indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Evertz Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Evertz Technologies Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Evertz Technologies is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Celsius Holdings and Evertz Technologies

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

The idea behind Celsius Holdings and Evertz Technologies Limited 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.