Correlation Between Celsius Holdings and Aerofoam Metals
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Aerofoam Metals 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 Aerofoam Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Aerofoam Metals, you can compare the effects of market volatilities on Celsius Holdings and Aerofoam Metals 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 Aerofoam Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Aerofoam Metals.
Diversification Opportunities for Celsius Holdings and Aerofoam Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Celsius and Aerofoam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Aerofoam Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aerofoam Metals 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 Aerofoam Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aerofoam Metals has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Aerofoam Metals go up and down completely randomly.
Pair Corralation between Celsius Holdings and Aerofoam Metals
If you would invest 0.01 in Aerofoam Metals on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Aerofoam Metals or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.73% |
| Values | Daily Returns |
Celsius Holdings vs. Aerofoam Metals
Performance |
| Timeline |
| Celsius Holdings |
| Aerofoam Metals |
Celsius Holdings and Aerofoam Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Aerofoam Metals
The main advantage of trading using opposite Celsius Holdings and Aerofoam Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Aerofoam Metals 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 Aerofoam Metals will offset losses from the drop in Aerofoam Metals' long position.| Celsius Holdings vs. Coca Cola Consolidated | Celsius Holdings vs. Keurig Dr Pepper | Celsius Holdings vs. PepsiCo | Celsius Holdings vs. Coca Cola Femsa SAB |
| Aerofoam Metals vs. Alsea SAB de | Aerofoam Metals vs. Marstons PLC | Aerofoam Metals vs. Bagger Daves Burger | Aerofoam Metals vs. Marstons PLC |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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