Correlation Between Celsius Holdings and IsoRay

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

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

Diversification Opportunities for Celsius Holdings and IsoRay

0.26

Correlation Coefficient

Celsius Holdings  IsoRay

Modest diversification

The 3 months correlation between Celsius and IsoRay is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and IsoRay Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IsoRay Inc 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 IsoRay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IsoRay Inc has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and IsoRay go up and down completely randomly.

Pair Corralation between Celsius Holdings and IsoRay

If you would invest  38.00  in IsoRay Inc on September 29, 2024 and sell it today you would earn a total of  0.00  from holding IsoRay Inc or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	4.76%
Values	Daily Returns

Celsius Holdings  vs.  IsoRay Inc

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.

IsoRay Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days IsoRay Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, IsoRay is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Celsius Holdings and IsoRay

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

The idea behind Celsius Holdings and IsoRay Inc 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.