Correlation Between Celsius Holdings and Asure Software
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Asure Software 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 Asure Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Asure Software, you can compare the effects of market volatilities on Celsius Holdings and Asure Software 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 Asure Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Asure Software.
Diversification Opportunities for Celsius Holdings and Asure Software
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Celsius and Asure is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Asure Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asure Software 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 Asure Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asure Software has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Asure Software go up and down completely randomly.
Pair Corralation between Celsius Holdings and Asure Software
Given the investment horizon of 90 days Celsius Holdings is expected to under-perform the Asure Software. In addition to that, Celsius Holdings is 1.14 times more volatile than Asure Software. It trades about -0.02 of its total potential returns per unit of risk. Asure Software is currently generating about 0.0 per unit of volatility. If you would invest 1,223 in Asure Software on August 31, 2024 and sell it today you would lose (244.00) from holding Asure Software or give up 19.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celsius Holdings vs. Asure Software
Performance |
| Timeline |
| Celsius Holdings |
| Asure Software |
Celsius Holdings and Asure Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Asure Software
The main advantage of trading using opposite Celsius Holdings and Asure Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Asure Software 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 Asure Software will offset losses from the drop in Asure Software's long position.| Celsius Holdings vs. Vita Coco | Celsius Holdings vs. PepsiCo | Celsius Holdings vs. The Coca Cola | Celsius Holdings vs. Coca Cola Femsa SAB |
| Asure Software vs. Alkami Technology | Asure Software vs. Blackbaud | Asure Software vs. Enfusion | Asure Software vs. Clearwater Analytics Holdings |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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