Correlation Between Celsius Holdings and Hill Street
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Hill Street 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 Hill Street into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Hill Street Beverage, you can compare the effects of market volatilities on Celsius Holdings and Hill Street 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 Hill Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Hill Street.
Diversification Opportunities for Celsius Holdings and Hill Street
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Celsius and Hill is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Hill Street Beverage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hill Street Beverage 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 Hill Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hill Street Beverage has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Hill Street go up and down completely randomly.
Pair Corralation between Celsius Holdings and Hill Street
Given the investment horizon of 90 days Celsius Holdings is expected to under-perform the Hill Street. But the stock apears to be less risky and, when comparing its historical volatility, Celsius Holdings is 2.01 times less risky than Hill Street. The stock trades about -0.05 of its potential returns per unit of risk. The Hill Street Beverage is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 17.00 in Hill Street Beverage on August 24, 2024 and sell it today you would earn a total of 5.00 from holding Hill Street Beverage or generate 29.41% 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. Hill Street Beverage
Performance |
| Timeline |
| Celsius Holdings |
| Hill Street Beverage |
Celsius Holdings and Hill Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Hill Street
The main advantage of trading using opposite Celsius Holdings and Hill Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Hill Street 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 Hill Street will offset losses from the drop in Hill Street'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 |
| Hill Street vs. Barfresh Food Group | Hill Street vs. Fbec Worldwide | Hill Street vs. Eq Energy Drink | Hill Street vs. V Group |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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