Correlation Between Celsius Holdings and Agape ATP
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Agape ATP 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 Agape ATP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Agape ATP, you can compare the effects of market volatilities on Celsius Holdings and Agape ATP 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 Agape ATP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Agape ATP.
Diversification Opportunities for Celsius Holdings and Agape ATP
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Celsius and Agape is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Agape ATP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agape ATP 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 Agape ATP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agape ATP has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Agape ATP go up and down completely randomly.
Pair Corralation between Celsius Holdings and Agape ATP
Given the investment horizon of 90 days Celsius Holdings is expected to generate 0.95 times more return on investment than Agape ATP. However, Celsius Holdings is 1.05 times less risky than Agape ATP. It trades about -0.09 of its potential returns per unit of risk. Agape ATP is currently generating about -0.16 per unit of risk. If you would invest 3,069 in Celsius Holdings on August 31, 2024 and sell it today you would lose (232.00) from holding Celsius Holdings or give up 7.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celsius Holdings vs. Agape ATP
Performance |
| Timeline |
| Celsius Holdings |
| Agape ATP |
Celsius Holdings and Agape ATP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Agape ATP
The main advantage of trading using opposite Celsius Holdings and Agape ATP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Agape ATP 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 Agape ATP will offset losses from the drop in Agape ATP'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 |
| Agape ATP vs. Celsius Holdings | Agape ATP vs. Village Super Market | Agape ATP vs. Old Republic International | Agape ATP vs. Guangdong Investment Limited |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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