Correlation Between Cedar Realty and Celsius Holdings
Can any of the company-specific risk be diversified away by investing in both Cedar Realty 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 Cedar Realty and Celsius Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cedar Realty Trust and Celsius Holdings, you can compare the effects of market volatilities on Cedar Realty 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 Cedar Realty with a short position of Celsius Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cedar Realty and Celsius Holdings.
Diversification Opportunities for Cedar Realty and Celsius Holdings
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cedar and Celsius is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Cedar Realty Trust and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings and Cedar Realty 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 Cedar Realty Trust 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 Cedar Realty i.e., Cedar Realty and Celsius Holdings go up and down completely randomly.
Pair Corralation between Cedar Realty and Celsius Holdings
Assuming the 90 days trading horizon Cedar Realty Trust is expected to generate 0.78 times more return on investment than Celsius Holdings. However, Cedar Realty Trust is 1.28 times less risky than Celsius Holdings. It trades about 0.05 of its potential returns per unit of risk. Celsius Holdings is currently generating about -0.02 per unit of risk. If you would invest 1,131 in Cedar Realty Trust on August 31, 2024 and sell it today you would earn a total of 507.00 from holding Cedar Realty Trust or generate 44.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cedar Realty Trust vs. Celsius Holdings
Performance |
| Timeline |
| Cedar Realty Trust |
| Celsius Holdings |
Cedar Realty and Celsius Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cedar Realty and Celsius Holdings
The main advantage of trading using opposite Cedar Realty and Celsius Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cedar Realty 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.| Cedar Realty vs. Saul Centers | Cedar Realty vs. Kimco Realty | Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. Macerich Company |
| Celsius Holdings vs. Vita Coco | Celsius Holdings vs. PepsiCo | Celsius Holdings vs. The Coca Cola | 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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