Correlation Between Celsius Holdings and Dolphin Entertainment
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Dolphin Entertainment 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 Dolphin Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Dolphin Entertainment, you can compare the effects of market volatilities on Celsius Holdings and Dolphin Entertainment 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 Dolphin Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Dolphin Entertainment.
Diversification Opportunities for Celsius Holdings and Dolphin Entertainment
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Celsius and Dolphin is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Dolphin Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dolphin Entertainment 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 Dolphin Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dolphin Entertainment has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Dolphin Entertainment go up and down completely randomly.
Pair Corralation between Celsius Holdings and Dolphin Entertainment
Given the investment horizon of 90 days Celsius Holdings is expected to generate 0.98 times more return on investment than Dolphin Entertainment. However, Celsius Holdings is 1.02 times less risky than Dolphin Entertainment. It trades about -0.1 of its potential returns per unit of risk. Dolphin Entertainment is currently generating about -0.16 per unit of risk. If you would invest 3,103 in Celsius Holdings on August 30, 2024 and sell it today you would lose (266.00) from holding Celsius Holdings or give up 8.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celsius Holdings vs. Dolphin Entertainment
Performance |
| Timeline |
| Celsius Holdings |
| Dolphin Entertainment |
Celsius Holdings and Dolphin Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Dolphin Entertainment
The main advantage of trading using opposite Celsius Holdings and Dolphin Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Dolphin Entertainment 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 Dolphin Entertainment will offset losses from the drop in Dolphin Entertainment's long position.| Celsius Holdings vs. Coca Cola Consolidated | Celsius Holdings vs. Keurig Dr Pepper | Celsius Holdings vs. PepsiCo | Celsius Holdings vs. Coca Cola Femsa SAB |
| Dolphin Entertainment vs. Hall of Fame | Dolphin Entertainment vs. Wisekey International Holding | Dolphin Entertainment vs. Oriental Culture Holding |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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