Correlation Between Kenon Holdings and Celsius Holdings
Can any of the company-specific risk be diversified away by investing in both Kenon Holdings and Celsius Holdings 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 Kenon Holdings and Celsius Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kenon Holdings and Celsius Holdings, you can compare the effects of market volatilities on Kenon Holdings and Celsius Holdings 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 Kenon Holdings with a short position of Celsius Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kenon Holdings and Celsius Holdings.
Diversification Opportunities for Kenon Holdings and Celsius Holdings
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kenon and Celsius is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Kenon Holdings and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings and Kenon 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 Kenon Holdings are associated (or correlated) with Celsius Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celsius Holdings has no effect on the direction of Kenon Holdings i.e., Kenon Holdings and Celsius Holdings go up and down completely randomly.
Pair Corralation between Kenon Holdings and Celsius Holdings
Considering the 90-day investment horizon Kenon Holdings is expected to generate 0.43 times more return on investment than Celsius Holdings. However, Kenon Holdings is 2.32 times less risky than Celsius Holdings. It trades about 0.16 of its potential returns per unit of risk. Celsius Holdings is currently generating about -0.04 per unit of risk. If you would invest 2,719 in Kenon Holdings on September 27, 2024 and sell it today you would earn a total of 496.00 from holding Kenon Holdings or generate 18.24% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Kenon Holdings vs. Celsius Holdings
Performance |
Timeline |
Kenon Holdings |
Celsius Holdings |
Kenon Holdings and Celsius Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kenon Holdings and Celsius Holdings
The main advantage of trading using opposite Kenon Holdings and Celsius Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kenon Holdings position performs unexpectedly, Celsius Holdings 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 Celsius Holdings will offset losses from the drop in Celsius Holdings' long position.Kenon Holdings vs. Vistra Energy Corp | Kenon Holdings vs. Pampa Energia SA | Kenon Holdings vs. NRG Energy | Kenon Holdings vs. TransAlta Corp |
Celsius Holdings vs. Vita Coco | Celsius Holdings vs. Keurig Dr Pepper | Celsius Holdings vs. PepsiCo | Celsius Holdings vs. Coca Cola Femsa SAB |
Check out your portfolio center.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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |