Correlation Between Celsius Holdings and Citizens
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Citizens 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 Citizens into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Citizens, you can compare the effects of market volatilities on Celsius Holdings and Citizens 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 Citizens. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Citizens.
Diversification Opportunities for Celsius Holdings and Citizens
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Celsius and Citizens is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Citizens in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citizens 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 Citizens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citizens has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Citizens go up and down completely randomly.
Pair Corralation between Celsius Holdings and Citizens
Given the investment horizon of 90 days Celsius Holdings is expected to under-perform the Citizens. But the stock apears to be less risky and, when comparing its historical volatility, Celsius Holdings is 1.06 times less risky than Citizens. The stock trades about -0.13 of its potential returns per unit of risk. The Citizens is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 459.00 in Citizens on September 2, 2024 and sell it today you would lose (11.00) from holding Citizens or give up 2.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celsius Holdings vs. Citizens
Performance |
| Timeline |
| Celsius Holdings |
| Citizens |
Celsius Holdings and Citizens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Citizens
The main advantage of trading using opposite Celsius Holdings and Citizens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Citizens 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 Citizens will offset losses from the drop in Citizens' long position.| Celsius Holdings vs. Vita Coco | Celsius Holdings vs. Keurig Dr Pepper | Celsius Holdings vs. PepsiCo | Celsius Holdings vs. Coca Cola Femsa SAB |
| Citizens vs. CNO Financial Group | Citizens vs. Brighthouse Financial | Citizens vs. FG Annuities Life | Citizens vs. Prudential Public 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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