Correlation Between Celsius Holdings and Entegris
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Entegris 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 Entegris into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Entegris, you can compare the effects of market volatilities on Celsius Holdings and Entegris 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 Entegris. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Entegris.
Diversification Opportunities for Celsius Holdings and Entegris
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Celsius and Entegris is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Entegris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entegris 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 Entegris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Entegris has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Entegris go up and down completely randomly.
Pair Corralation between Celsius Holdings and Entegris
Given the investment horizon of 90 days Celsius Holdings is expected to generate 1.64 times less return on investment than Entegris. In addition to that, Celsius Holdings is 1.79 times more volatile than Entegris. It trades about 0.05 of its total potential returns per unit of risk. Entegris is currently generating about 0.14 per unit of volatility. If you would invest 10,228 in Entegris on October 22, 2024 and sell it today you would earn a total of 410.00 from holding Entegris or generate 4.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celsius Holdings vs. Entegris
Performance |
| Timeline |
| Celsius Holdings |
| Entegris |
Celsius Holdings and Entegris Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Entegris
The main advantage of trading using opposite Celsius Holdings and Entegris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Entegris 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 Entegris will offset losses from the drop in Entegris' long position.| Celsius Holdings vs. Vita Coco | Celsius Holdings vs. Keurig Dr Pepper | Celsius Holdings vs. PepsiCo | Celsius Holdings vs. Coca Cola Femsa SAB |
| Entegris vs. Teradyne | Entegris vs. Ichor Holdings | Entegris vs. Amtech Systems | Entegris vs. Veeco Instruments |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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