Correlation Between Celsius Holdings and Flow Beverage
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Flow Beverage 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 Flow Beverage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Flow Beverage Corp, you can compare the effects of market volatilities on Celsius Holdings and Flow Beverage 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 Flow Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Flow Beverage.
Diversification Opportunities for Celsius Holdings and Flow Beverage
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Celsius and Flow is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Flow Beverage Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flow Beverage 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 Flow Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flow Beverage Corp has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Flow Beverage go up and down completely randomly.
Pair Corralation between Celsius Holdings and Flow Beverage
Given the investment horizon of 90 days Celsius Holdings is expected to generate 0.73 times more return on investment than Flow Beverage. However, Celsius Holdings is 1.37 times less risky than Flow Beverage. It trades about 0.2 of its potential returns per unit of risk. Flow Beverage Corp is currently generating about 0.03 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 412.00 from holding Celsius Holdings or generate 15.28% 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. Flow Beverage Corp
Performance |
| Timeline |
| Celsius Holdings |
| Flow Beverage Corp |
Celsius Holdings and Flow Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Flow Beverage
The main advantage of trading using opposite Celsius Holdings and Flow Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Flow Beverage 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 Flow Beverage will offset losses from the drop in Flow Beverage's long position.| Celsius Holdings vs. Coca Cola Femsa SAB | Celsius Holdings vs. Keurig Dr Pepper | Celsius Holdings vs. Embotelladora Andina SA | Celsius Holdings vs. Coca Cola European Partners |
| Flow Beverage vs. Barfresh Food Group | Flow Beverage vs. Fbec Worldwide | Flow Beverage vs. Hill Street Beverage | Flow Beverage vs. Eq Energy Drink |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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