Correlation Between Celsius Holdings and Payoneer Global

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

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

Diversification Opportunities for Celsius Holdings and Payoneer Global

-0.65

Correlation Coefficient

Celsius Holdings  Payoneer Global

Excellent diversification

The 3 months correlation between Celsius and Payoneer is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Payoneer Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payoneer Global 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 Payoneer Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payoneer Global has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Payoneer Global go up and down completely randomly.

Pair Corralation between Celsius Holdings and Payoneer Global

Given the investment horizon of 90 days Celsius Holdings is expected to under-perform the Payoneer Global. In addition to that, Celsius Holdings is 1.3 times more volatile than Payoneer Global. It trades about -0.05 of its total potential returns per unit of risk. Payoneer Global is currently generating about 0.16 per unit of volatility. If you would invest  753.00  in Payoneer Global on September 30, 2024 and sell it today you would earn a total of  248.00  from holding Payoneer Global or generate 32.93% return on investment over 90 days.

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

Celsius Holdings  vs.  Payoneer Global

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.

Payoneer Global

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Payoneer Global are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, Payoneer Global displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Celsius Holdings and Payoneer Global

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

The idea behind Celsius Holdings and Payoneer Global 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.