Correlation Between Celsius Holdings and Innovative Industrial
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Innovative Industrial 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 Innovative Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Innovative Industrial Properties, you can compare the effects of market volatilities on Celsius Holdings and Innovative Industrial 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 Innovative Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Innovative Industrial.
Diversification Opportunities for Celsius Holdings and Innovative Industrial
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Celsius and Innovative is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Innovative Industrial Properti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovative Industrial 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 Innovative Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovative Industrial has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Innovative Industrial go up and down completely randomly.
Pair Corralation between Celsius Holdings and Innovative Industrial
Given the investment horizon of 90 days Celsius Holdings is expected to generate 3.25 times more return on investment than Innovative Industrial. However, Celsius Holdings is 3.25 times more volatile than Innovative Industrial Properties. It trades about 0.01 of its potential returns per unit of risk. Innovative Industrial Properties is currently generating about -0.03 per unit of risk. If you would invest 3,349 in Celsius Holdings on September 24, 2024 and sell it today you would lose (648.00) from holding Celsius Holdings or give up 19.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 89.94% |
| Values | Daily Returns |
Celsius Holdings vs. Innovative Industrial Properti
Performance |
| Timeline |
| Celsius Holdings |
| Innovative Industrial |
Celsius Holdings and Innovative Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Innovative Industrial
The main advantage of trading using opposite Celsius Holdings and Innovative Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Innovative Industrial 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 Innovative Industrial will offset losses from the drop in Innovative Industrial'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 |
| Innovative Industrial vs. Celsius Holdings | Innovative Industrial vs. National Beverage Corp | Innovative Industrial vs. Amkor Technology | Innovative Industrial vs. Uber Technologies |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |