Correlation Between Celsius Holdings and Codexis
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Codexis 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 Codexis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Codexis, you can compare the effects of market volatilities on Celsius Holdings and Codexis 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 Codexis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Codexis.
Diversification Opportunities for Celsius Holdings and Codexis
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Celsius and Codexis is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Codexis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codexis 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 Codexis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Codexis has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Codexis go up and down completely randomly.
Pair Corralation between Celsius Holdings and Codexis
Given the investment horizon of 90 days Celsius Holdings is expected to generate 5.72 times less return on investment than Codexis. But when comparing it to its historical volatility, Celsius Holdings is 1.53 times less risky than Codexis. It trades about 0.0 of its potential returns per unit of risk. Codexis is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 575.00 in Codexis on November 5, 2024 and sell it today you would lose (156.00) from holding Codexis or give up 27.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Celsius Holdings vs. Codexis
Performance |
| Timeline |
| Celsius Holdings |
| Codexis |
Celsius Holdings and Codexis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Codexis
The main advantage of trading using opposite Celsius Holdings and Codexis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Codexis 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 Codexis will offset losses from the drop in Codexis' long position.| Celsius Holdings vs. Vita Coco | Celsius Holdings vs. Keurig Dr Pepper | Celsius Holdings vs. PepsiCo | Celsius Holdings vs. Coca Cola Femsa SAB |
| Codexis vs. Nuvation Bio | Codexis vs. Lyell Immunopharma | Codexis vs. Century Therapeutics | Codexis vs. Generation Bio Co |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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