Correlation Between Celsius Holdings and Hesai Group
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Hesai Group 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 Hesai Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Hesai Group American, you can compare the effects of market volatilities on Celsius Holdings and Hesai Group 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 Hesai Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Hesai Group.
Diversification Opportunities for Celsius Holdings and Hesai Group
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Celsius and Hesai is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Hesai Group American in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hesai Group American 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 Hesai Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hesai Group American has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Hesai Group go up and down completely randomly.
Pair Corralation between Celsius Holdings and Hesai Group
Given the investment horizon of 90 days Celsius Holdings is expected to under-perform the Hesai Group. But the stock apears to be less risky and, when comparing its historical volatility, Celsius Holdings is 3.22 times less risky than Hesai Group. The stock trades about -0.1 of its potential returns per unit of risk. The Hesai Group American is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 450.00 in Hesai Group American on September 4, 2024 and sell it today you would earn a total of 314.00 from holding Hesai Group American or generate 69.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celsius Holdings vs. Hesai Group American
Performance |
| Timeline |
| Celsius Holdings |
| Hesai Group American |
Celsius Holdings and Hesai Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Hesai Group
The main advantage of trading using opposite Celsius Holdings and Hesai Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Hesai Group 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 Hesai Group will offset losses from the drop in Hesai Group's long position.| Celsius Holdings vs. Vita Coco | Celsius Holdings vs. Keurig Dr Pepper | Celsius Holdings vs. PepsiCo | Celsius Holdings vs. Coca Cola Femsa SAB |
| Hesai Group vs. PepsiCo | Hesai Group vs. Vita Coco | Hesai Group vs. Celsius Holdings | Hesai Group vs. Genfit |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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