Correlation Between Celsius Holdings and NASDAQ Dividend
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and NASDAQ Dividend 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 NASDAQ Dividend into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and NASDAQ Dividend Achievers, you can compare the effects of market volatilities on Celsius Holdings and NASDAQ Dividend 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 NASDAQ Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and NASDAQ Dividend.
Diversification Opportunities for Celsius Holdings and NASDAQ Dividend
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Celsius and NASDAQ is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and NASDAQ Dividend Achievers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NASDAQ Dividend Achievers 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 NASDAQ Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NASDAQ Dividend Achievers has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and NASDAQ Dividend go up and down completely randomly.
Pair Corralation between Celsius Holdings and NASDAQ Dividend
Given the investment horizon of 90 days Celsius Holdings is expected to under-perform the NASDAQ Dividend. In addition to that, Celsius Holdings is 5.81 times more volatile than NASDAQ Dividend Achievers. It trades about -0.04 of its total potential returns per unit of risk. NASDAQ Dividend Achievers is currently generating about 0.12 per unit of volatility. If you would invest 371,651 in NASDAQ Dividend Achievers on September 12, 2024 and sell it today you would earn a total of 101,746 from holding NASDAQ Dividend Achievers or generate 27.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.7% |
| Values | Daily Returns |
Celsius Holdings vs. NASDAQ Dividend Achievers
Performance |
| Timeline |
Celsius Holdings and NASDAQ Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Celsius Holdings
Pair trading matchups for Celsius Holdings
NASDAQ Dividend Achievers
Pair trading matchups for NASDAQ Dividend
Pair Trading with Celsius Holdings and NASDAQ Dividend
The main advantage of trading using opposite Celsius Holdings and NASDAQ Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, NASDAQ Dividend 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 NASDAQ Dividend will offset losses from the drop in NASDAQ Dividend'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 |
| NASDAQ Dividend vs. Sensient Technologies | NASDAQ Dividend vs. Willamette Valley Vineyards | NASDAQ Dividend vs. Origin Materials | NASDAQ Dividend vs. Celsius 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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