Correlation Between Celsius Holdings and ESH Acquisition
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and ESH Acquisition 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 ESH Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and ESH Acquisition Corp, you can compare the effects of market volatilities on Celsius Holdings and ESH Acquisition 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 ESH Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and ESH Acquisition.
Diversification Opportunities for Celsius Holdings and ESH Acquisition
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Celsius and ESH is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and ESH Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ESH Acquisition Corp 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 ESH Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ESH Acquisition Corp has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and ESH Acquisition go up and down completely randomly.
Pair Corralation between Celsius Holdings and ESH Acquisition
Given the investment horizon of 90 days Celsius Holdings is expected to generate 10.01 times more return on investment than ESH Acquisition. However, Celsius Holdings is 10.01 times more volatile than ESH Acquisition Corp. It trades about 0.15 of its potential returns per unit of risk. ESH Acquisition Corp is currently generating about 0.16 per unit of risk. If you would invest 2,696 in Celsius Holdings on September 13, 2024 and sell it today you would earn a total of 280.00 from holding Celsius Holdings or generate 10.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celsius Holdings vs. ESH Acquisition Corp
Performance |
| Timeline |
| Celsius Holdings |
| ESH Acquisition Corp |
Celsius Holdings and ESH Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and ESH Acquisition
The main advantage of trading using opposite Celsius Holdings and ESH Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, ESH Acquisition 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 ESH Acquisition will offset losses from the drop in ESH Acquisition's long position.| Celsius Holdings vs. Monster Beverage Corp | Celsius Holdings vs. Coca Cola Femsa SAB | Celsius Holdings vs. Keurig Dr Pepper | Celsius Holdings vs. Embotelladora Andina SA |
| ESH Acquisition vs. HE Equipment Services | ESH Acquisition vs. AmTrust Financial Services | ESH Acquisition vs. Barings BDC | ESH Acquisition vs. Univest Pennsylvania |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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