Correlation Between Celsius Holdings and Catalent
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Catalent 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 Catalent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Catalent, you can compare the effects of market volatilities on Celsius Holdings and Catalent 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 Catalent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Catalent.
Diversification Opportunities for Celsius Holdings and Catalent
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Celsius and Catalent is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Catalent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalent 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 Catalent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalent has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Catalent go up and down completely randomly.
Pair Corralation between Celsius Holdings and Catalent
Given the investment horizon of 90 days Celsius Holdings is expected to generate 29.14 times less return on investment than Catalent. In addition to that, Celsius Holdings is 1.19 times more volatile than Catalent. It trades about 0.0 of its total potential returns per unit of risk. Catalent is currently generating about 0.04 per unit of volatility. If you would invest 4,550 in Catalent on September 2, 2024 and sell it today you would earn a total of 1,561 from holding Catalent or generate 34.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celsius Holdings vs. Catalent
Performance |
| Timeline |
| Celsius Holdings |
| Catalent |
Celsius Holdings and Catalent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Catalent
The main advantage of trading using opposite Celsius Holdings and Catalent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Catalent 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 Catalent will offset losses from the drop in Catalent'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 |
| Catalent vs. Crinetics Pharmaceuticals | Catalent vs. Enanta Pharmaceuticals | Catalent vs. Amicus Therapeutics | Catalent vs. Connect Biopharma Holdings |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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