Correlation Between Avient Corp and Celsius Holdings
Can any of the company-specific risk be diversified away by investing in both Avient Corp 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 Avient Corp and Celsius Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avient Corp and Celsius Holdings, you can compare the effects of market volatilities on Avient Corp 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 Avient Corp with a short position of Celsius Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avient Corp and Celsius Holdings.
Diversification Opportunities for Avient Corp and Celsius Holdings
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Avient and Celsius is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Avient Corp and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings and Avient Corp 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 Avient Corp 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 Avient Corp i.e., Avient Corp and Celsius Holdings go up and down completely randomly.
Pair Corralation between Avient Corp and Celsius Holdings
Given the investment horizon of 90 days Avient Corp is expected to generate 0.5 times more return on investment than Celsius Holdings. However, Avient Corp is 2.02 times less risky than Celsius Holdings. It trades about 0.1 of its potential returns per unit of risk. Celsius Holdings is currently generating about -0.04 per unit of risk. If you would invest 3,351 in Avient Corp on August 25, 2024 and sell it today you would earn a total of 1,766 from holding Avient Corp or generate 52.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Avient Corp vs. Celsius Holdings
Performance |
| Timeline |
| Avient Corp |
| Celsius Holdings |
Avient Corp and Celsius Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avient Corp and Celsius Holdings
The main advantage of trading using opposite Avient Corp and Celsius Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avient Corp 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.| Avient Corp vs. Axalta Coating Systems | Avient Corp vs. H B Fuller | Avient Corp vs. Quaker Chemical | Avient Corp vs. Cabot |
| 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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