Correlation Between BOS Better and Celsius Holdings
Can any of the company-specific risk be diversified away by investing in both BOS Better 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 BOS Better and Celsius Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BOS Better Online and Celsius Holdings, you can compare the effects of market volatilities on BOS Better 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 BOS Better with a short position of Celsius Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOS Better and Celsius Holdings.
Diversification Opportunities for BOS Better and Celsius Holdings
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BOS and Celsius is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding BOS Better Online and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings and BOS Better 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 BOS Better Online 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 BOS Better i.e., BOS Better and Celsius Holdings go up and down completely randomly.
Pair Corralation between BOS Better and Celsius Holdings
Given the investment horizon of 90 days BOS Better Online is expected to generate 0.49 times more return on investment than Celsius Holdings. However, BOS Better Online is 2.04 times less risky than Celsius Holdings. It trades about 0.08 of its potential returns per unit of risk. Celsius Holdings is currently generating about -0.18 per unit of risk. If you would invest 290.00 in BOS Better Online on September 2, 2024 and sell it today you would earn a total of 49.00 from holding BOS Better Online or generate 16.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BOS Better Online vs. Celsius Holdings
Performance |
| Timeline |
| BOS Better Online |
| Celsius Holdings |
BOS Better and Celsius Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOS Better and Celsius Holdings
The main advantage of trading using opposite BOS Better and Celsius Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOS Better 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.| BOS Better vs. Mynaric AG ADR | BOS Better vs. Knowles Cor | BOS Better vs. Comtech Telecommunications Corp | BOS Better vs. Ituran Location and |
| 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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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