Correlation Between Celsius Holdings and Digi International
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Digi International 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 Digi International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Digi International, you can compare the effects of market volatilities on Celsius Holdings and Digi International 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 Digi International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Digi International.
Diversification Opportunities for Celsius Holdings and Digi International
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Celsius and Digi is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Digi International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digi International 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 Digi International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digi International has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Digi International go up and down completely randomly.
Pair Corralation between Celsius Holdings and Digi International
Given the investment horizon of 90 days Celsius Holdings is expected to under-perform the Digi International. In addition to that, Celsius Holdings is 1.21 times more volatile than Digi International. It trades about -0.16 of its total potential returns per unit of risk. Digi International is currently generating about 0.12 per unit of volatility. If you would invest 3,051 in Digi International on August 29, 2024 and sell it today you would earn a total of 213.00 from holding Digi International or generate 6.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celsius Holdings vs. Digi International
Performance |
| Timeline |
| Celsius Holdings |
| Digi International |
Celsius Holdings and Digi International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Digi International
The main advantage of trading using opposite Celsius Holdings and Digi International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Digi International 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 Digi International will offset losses from the drop in Digi International'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 |
| Digi International vs. Ichor Holdings | Digi International vs. Fabrinet | Digi International vs. Hello Group | Digi International vs. Ultra Clean 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |