Correlation Between Celsius Holdings and Barfresh Food
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Barfresh Food 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 Barfresh Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Barfresh Food Group, you can compare the effects of market volatilities on Celsius Holdings and Barfresh Food 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 Barfresh Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Barfresh Food.
Diversification Opportunities for Celsius Holdings and Barfresh Food
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Celsius and Barfresh is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Barfresh Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barfresh Food Group 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 Barfresh Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barfresh Food Group has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Barfresh Food go up and down completely randomly.
Pair Corralation between Celsius Holdings and Barfresh Food
Given the investment horizon of 90 days Celsius Holdings is expected to under-perform the Barfresh Food. But the stock apears to be less risky and, when comparing its historical volatility, Celsius Holdings is 1.83 times less risky than Barfresh Food. The stock trades about -0.08 of its potential returns per unit of risk. The Barfresh Food Group is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 253.00 in Barfresh Food Group on November 1, 2024 and sell it today you would earn a total of 135.00 from holding Barfresh Food Group or generate 53.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celsius Holdings vs. Barfresh Food Group
Performance |
| Timeline |
| Celsius Holdings |
| Barfresh Food Group |
Celsius Holdings and Barfresh Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Barfresh Food
The main advantage of trading using opposite Celsius Holdings and Barfresh Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Barfresh Food 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 Barfresh Food will offset losses from the drop in Barfresh Food'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 |
| Barfresh Food vs. Flow Beverage Corp | Barfresh Food vs. Fbec Worldwide | Barfresh Food vs. Hill Street Beverage | Barfresh Food vs. Eq Energy Drink |
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 Directory module to find actively traded commodities issued by global exchanges.
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