Correlation Between Celsius Holdings and Barings BDC
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Barings BDC 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 Barings BDC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Barings BDC, you can compare the effects of market volatilities on Celsius Holdings and Barings BDC 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 Barings BDC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Barings BDC.
Diversification Opportunities for Celsius Holdings and Barings BDC
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Celsius and Barings is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Barings BDC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings BDC 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 Barings BDC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings BDC has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Barings BDC go up and down completely randomly.
Pair Corralation between Celsius Holdings and Barings BDC
Given the investment horizon of 90 days Celsius Holdings is expected to generate 6.85 times more return on investment than Barings BDC. However, Celsius Holdings is 6.85 times more volatile than Barings BDC. It trades about 0.17 of its potential returns per unit of risk. Barings BDC is currently generating about 0.2 per unit of risk. If you would invest 2,538 in Celsius Holdings on November 27, 2024 and sell it today you would earn a total of 599.00 from holding Celsius Holdings or generate 23.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celsius Holdings vs. Barings BDC
Performance |
| Timeline |
| Celsius Holdings |
| Barings BDC |
Celsius Holdings and Barings BDC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Barings BDC
The main advantage of trading using opposite Celsius Holdings and Barings BDC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Barings BDC 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 Barings BDC will offset losses from the drop in Barings BDC's long position.| Celsius Holdings vs. Vita Coco | Celsius Holdings vs. Keurig Dr Pepper | Celsius Holdings vs. PepsiCo | Celsius Holdings vs. Coca Cola Femsa SAB |
| Barings BDC vs. Runway Growth Finance | Barings BDC vs. OneMain Holdings | Barings BDC vs. Navient Corp | Barings BDC vs. Oaktree Specialty Lending |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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