Correlation Between Kinetik Holdings and Celsius Holdings

Can any of the company-specific risk be diversified away by investing in both Kinetik 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 Kinetik 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 Kinetik Holdings and Celsius Holdings, you can compare the effects of market volatilities on Kinetik 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 Kinetik Holdings with a short position of Celsius Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetik Holdings and Celsius Holdings.

Diversification Opportunities for Kinetik Holdings and Celsius Holdings

-0.66

Correlation Coefficient

Kinetik Holdings  Celsius Holdings

Excellent diversification

The 3 months correlation between Kinetik and Celsius is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Kinetik Holdings and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings and Kinetik 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 Kinetik 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 Kinetik Holdings i.e., Kinetik Holdings and Celsius Holdings go up and down completely randomly.

Pair Corralation between Kinetik Holdings and Celsius Holdings

Given the investment horizon of 90 days Kinetik Holdings is expected to under-perform the Celsius Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Kinetik Holdings is 1.69 times less risky than Celsius Holdings. The stock trades about -0.05 of its potential returns per unit of risk. The Celsius Holdings is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  2,837  in Celsius Holdings on September 28, 2024 and sell it today you would lose (69.00) from holding Celsius Holdings or give up 2.43% of portfolio value over 90 days.

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

Kinetik Holdings  vs.  Celsius Holdings

Kinetik Holdings

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kinetik Holdings are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Kinetik Holdings disclosed solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with Kinetik Holdings and Celsius Holdings

The main advantage of trading using opposite Kinetik Holdings and Celsius Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetik 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.

The idea behind Kinetik Holdings and Celsius Holdings 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.

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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..