Correlation Between Celsius Holdings and HUHUTECH International
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and HUHUTECH International 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 HUHUTECH International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and HUHUTECH International Group, you can compare the effects of market volatilities on Celsius Holdings and HUHUTECH International 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 HUHUTECH International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and HUHUTECH International.
Diversification Opportunities for Celsius Holdings and HUHUTECH International
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Celsius and HUHUTECH is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and HUHUTECH International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUHUTECH International 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 HUHUTECH International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUHUTECH International has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and HUHUTECH International go up and down completely randomly.
Pair Corralation between Celsius Holdings and HUHUTECH International
Given the investment horizon of 90 days Celsius Holdings is expected to generate 0.98 times more return on investment than HUHUTECH International. However, Celsius Holdings is 1.02 times less risky than HUHUTECH International. It trades about -0.16 of its potential returns per unit of risk. HUHUTECH International Group is currently generating about -0.21 per unit of risk. If you would invest 2,768 in Celsius Holdings on October 26, 2024 and sell it today you would lose (264.00) from holding Celsius Holdings or give up 9.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Celsius Holdings vs. HUHUTECH International Group
Performance |
| Timeline |
| Celsius Holdings |
| HUHUTECH International |
Celsius Holdings and HUHUTECH International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and HUHUTECH International
The main advantage of trading using opposite Celsius Holdings and HUHUTECH International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, HUHUTECH International 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 HUHUTECH International will offset losses from the drop in HUHUTECH International's long position.| Celsius Holdings vs. PepsiCo | Celsius Holdings vs. Vita Coco | Celsius Holdings vs. Aquagold International | Celsius Holdings vs. Thrivent High Yield |
| HUHUTECH International vs. Celsius Holdings | HUHUTECH International vs. Constellation Brands Class | HUHUTECH International vs. ScanSource | HUHUTECH International vs. Hunter Creek Mining |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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