Correlation Between Celsius Holdings and Abcellera Biologics
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Abcellera Biologics 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 Celsius Holdings and Abcellera Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Abcellera Biologics, you can compare the effects of market volatilities on Celsius Holdings and Abcellera Biologics 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 Celsius Holdings with a short position of Abcellera Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Abcellera Biologics.
Diversification Opportunities for Celsius Holdings and Abcellera Biologics
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Celsius and Abcellera is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Abcellera Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abcellera Biologics and Celsius 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 Celsius Holdings are associated (or correlated) with Abcellera Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abcellera Biologics has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Abcellera Biologics go up and down completely randomly.
Pair Corralation between Celsius Holdings and Abcellera Biologics
Given the investment horizon of 90 days Celsius Holdings is expected to under-perform the Abcellera Biologics. In addition to that, Celsius Holdings is 1.01 times more volatile than Abcellera Biologics. It trades about -0.08 of its total potential returns per unit of risk. Abcellera Biologics is currently generating about 0.09 per unit of volatility. If you would invest 250.00 in Abcellera Biologics on September 2, 2024 and sell it today you would earn a total of 51.00 from holding Abcellera Biologics or generate 20.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celsius Holdings vs. Abcellera Biologics
Performance |
| Timeline |
| Celsius Holdings |
| Abcellera Biologics |
Celsius Holdings and Abcellera Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Abcellera Biologics
The main advantage of trading using opposite Celsius Holdings and Abcellera Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Abcellera Biologics 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 Abcellera Biologics will offset losses from the drop in Abcellera Biologics' long position.| Celsius Holdings vs. Vita Coco | Celsius Holdings vs. Keurig Dr Pepper | Celsius Holdings vs. PepsiCo | Celsius Holdings vs. Coca Cola Femsa SAB |
| Abcellera Biologics vs. Tff Pharmaceuticals | Abcellera Biologics vs. Eliem Therapeutics | Abcellera Biologics vs. Inhibrx | Abcellera Biologics vs. Enliven Therapeutics |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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