Correlation Between Celsius Holdings and 02665WED9

Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and 02665WED9 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 02665WED9 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Celsius Holdings and HNDA 47 12 JAN 28, you can compare the effects of market volatilities on Celsius Holdings and 02665WED9 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 02665WED9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and 02665WED9.

Diversification Opportunities for Celsius Holdings and 02665WED9

0.55

Correlation Coefficient

Celsius Holdings  02665WED9

Very weak diversification

The 3 months correlation between Celsius and 02665WED9 is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and HNDA 47 12 JAN 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HNDA 47 12 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 02665WED9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HNDA 47 12 has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and 02665WED9 go up and down completely randomly.

Pair Corralation between Celsius Holdings and 02665WED9

Given the investment horizon of 90 days Celsius Holdings is expected to generate 9.93 times more return on investment than 02665WED9. However, Celsius Holdings is 9.93 times more volatile than HNDA 47 12 JAN 28. It trades about 0.01 of its potential returns per unit of risk. HNDA 47 12 JAN 28 is currently generating about 0.0 per unit of risk. If you would invest  3,571  in Celsius Holdings on September 5, 2024 and sell it today you would lose (707.00) from holding Celsius Holdings or give up 19.8% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	91.09%
Values	Daily Returns

Celsius Holdings  vs.  HNDA 47 12 JAN 28

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.

HNDA 47 12

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HNDA 47 12 JAN 28 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 02665WED9 is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Celsius Holdings and 02665WED9

The main advantage of trading using opposite Celsius Holdings and 02665WED9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, 02665WED9 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 02665WED9 will offset losses from the drop in 02665WED9's long position.

The idea behind Celsius Holdings and HNDA 47 12 JAN 28 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.