Correlation Between Rumble and Celsius Holdings

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

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

Diversification Opportunities for Rumble and Celsius Holdings

-0.44

Correlation Coefficient

Rumble  Celsius Holdings

Very good diversification

The 3 months correlation between Rumble and Celsius is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Rumble Inc and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings and Rumble 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 Rumble Inc 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 Rumble i.e., Rumble and Celsius Holdings go up and down completely randomly.

Pair Corralation between Rumble and Celsius Holdings

Considering the 90-day investment horizon Rumble Inc is expected to generate 1.41 times more return on investment than Celsius Holdings. However, Rumble is 1.41 times more volatile than Celsius Holdings. It trades about 0.13 of its potential returns per unit of risk. Celsius Holdings is currently generating about -0.03 per unit of risk. If you would invest  571.00  in Rumble Inc on September 13, 2024 and sell it today you would earn a total of  243.00  from holding Rumble Inc or generate 42.56% return on investment over 90 days.

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

Rumble Inc  vs.  Celsius Holdings

Rumble Inc

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Rumble Inc are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Rumble displayed 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 uncertain 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 Rumble and Celsius Holdings

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

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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 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..