Correlation Between Celsius Holdings and Globalfoundries
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Globalfoundries 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 Globalfoundries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Globalfoundries, you can compare the effects of market volatilities on Celsius Holdings and Globalfoundries 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 Globalfoundries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Globalfoundries.
Diversification Opportunities for Celsius Holdings and Globalfoundries
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Celsius and Globalfoundries is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Globalfoundries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globalfoundries 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 Globalfoundries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globalfoundries has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Globalfoundries go up and down completely randomly.
Pair Corralation between Celsius Holdings and Globalfoundries
Given the investment horizon of 90 days Celsius Holdings is expected to under-perform the Globalfoundries. In addition to that, Celsius Holdings is 1.51 times more volatile than Globalfoundries. It trades about -0.13 of its total potential returns per unit of risk. Globalfoundries is currently generating about -0.06 per unit of volatility. If you would invest 4,248 in Globalfoundries on November 3, 2024 and sell it today you would lose (111.00) from holding Globalfoundries or give up 2.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Celsius Holdings vs. Globalfoundries
Performance |
| Timeline |
| Celsius Holdings |
| Globalfoundries |
Celsius Holdings and Globalfoundries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Globalfoundries
The main advantage of trading using opposite Celsius Holdings and Globalfoundries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Globalfoundries 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 Globalfoundries will offset losses from the drop in Globalfoundries' long position.| Celsius Holdings vs. Vita Coco | Celsius Holdings vs. Keurig Dr Pepper | Celsius Holdings vs. PepsiCo | Celsius Holdings vs. Coca Cola Femsa SAB |
| Globalfoundries vs. NXP Semiconductors NV | Globalfoundries vs. Analog Devices | Globalfoundries vs. ON Semiconductor | Globalfoundries vs. Lattice Semiconductor |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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