Correlation Between Celsius Holdings and Fluent
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Fluent 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 Fluent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Fluent Inc, you can compare the effects of market volatilities on Celsius Holdings and Fluent 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 Fluent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Fluent.
Diversification Opportunities for Celsius Holdings and Fluent
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Celsius and Fluent is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Fluent Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluent Inc 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 Fluent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluent Inc has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Fluent go up and down completely randomly.
Pair Corralation between Celsius Holdings and Fluent
Given the investment horizon of 90 days Celsius Holdings is expected to generate 0.77 times more return on investment than Fluent. However, Celsius Holdings is 1.3 times less risky than Fluent. It trades about -0.1 of its potential returns per unit of risk. Fluent Inc is currently generating about -0.11 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celsius Holdings vs. Fluent Inc
Performance |
| Timeline |
| Celsius Holdings |
| Fluent Inc |
Celsius Holdings and Fluent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Fluent
The main advantage of trading using opposite Celsius Holdings and Fluent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Fluent 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 Fluent will offset losses from the drop in Fluent'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 |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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