Correlation Between Celsius Holdings and GATX
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and GATX 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 GATX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and GATX Corporation, you can compare the effects of market volatilities on Celsius Holdings and GATX 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 GATX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and GATX.
Diversification Opportunities for Celsius Holdings and GATX
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Celsius and GATX is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and GATX Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GATX 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 GATX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GATX has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and GATX go up and down completely randomly.
Pair Corralation between Celsius Holdings and GATX
Given the investment horizon of 90 days Celsius Holdings is expected to generate 1.19 times less return on investment than GATX. In addition to that, Celsius Holdings is 2.63 times more volatile than GATX Corporation. It trades about 0.02 of its total potential returns per unit of risk. GATX Corporation is currently generating about 0.07 per unit of volatility. If you would invest 10,364 in GATX Corporation on November 27, 2024 and sell it today you would earn a total of 5,976 from holding GATX Corporation or generate 57.66% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 99.8% |
Values | Daily Returns |
Celsius Holdings vs. GATX Corp.
Performance |
Timeline |
Celsius Holdings |
GATX |
Celsius Holdings and GATX Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Celsius Holdings and GATX
The main advantage of trading using opposite Celsius Holdings and GATX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, GATX 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 GATX will offset losses from the drop in GATX's long position.Celsius Holdings vs. Vita Coco | ||
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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