Correlation Between Celsius Holdings and Vita Coco
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Vita Coco 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 Vita Coco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Vita Coco, you can compare the effects of market volatilities on Celsius Holdings and Vita Coco 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 Vita Coco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Vita Coco.
Diversification Opportunities for Celsius Holdings and Vita Coco
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Celsius and Vita is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Vita Coco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vita Coco 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 Vita Coco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vita Coco has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Vita Coco go up and down completely randomly.
Pair Corralation between Celsius Holdings and Vita Coco
Given the investment horizon of 90 days Celsius Holdings is expected to under-perform the Vita Coco. In addition to that, Celsius Holdings is 1.09 times more volatile than Vita Coco. It trades about -0.12 of its total potential returns per unit of risk. Vita Coco is currently generating about 0.32 per unit of volatility. If you would invest 2,986 in Vita Coco on August 23, 2024 and sell it today you would earn a total of 677.00 from holding Vita Coco or generate 22.67% 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. Vita Coco
Performance |
| Timeline |
| Celsius Holdings |
| Vita Coco |
Celsius Holdings and Vita Coco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Vita Coco
The main advantage of trading using opposite Celsius Holdings and Vita Coco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Vita Coco 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 Vita Coco will offset losses from the drop in Vita Coco'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 |
| Vita Coco vs. Coca Cola Femsa SAB | Vita Coco vs. Coca Cola European Partners | Vita Coco vs. Embotelladora Andina SA | Vita Coco vs. Monster Beverage Corp |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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