Correlation Between Celsius Holdings and Jacobs Solutions
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Jacobs Solutions 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 Jacobs Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Jacobs Solutions, you can compare the effects of market volatilities on Celsius Holdings and Jacobs Solutions 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 Jacobs Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Jacobs Solutions.
Diversification Opportunities for Celsius Holdings and Jacobs Solutions
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Celsius and Jacobs is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Jacobs Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacobs Solutions 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 Jacobs Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacobs Solutions has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Jacobs Solutions go up and down completely randomly.
Pair Corralation between Celsius Holdings and Jacobs Solutions
Given the investment horizon of 90 days Celsius Holdings is expected to generate 5.7 times less return on investment than Jacobs Solutions. In addition to that, Celsius Holdings is 2.62 times more volatile than Jacobs Solutions. It trades about 0.0 of its total potential returns per unit of risk. Jacobs Solutions is currently generating about 0.05 per unit of volatility. If you would invest 9,996 in Jacobs Solutions on August 26, 2024 and sell it today you would earn a total of 3,740 from holding Jacobs Solutions or generate 37.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celsius Holdings vs. Jacobs Solutions
Performance |
| Timeline |
| Celsius Holdings |
| Jacobs Solutions |
Celsius Holdings and Jacobs Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Jacobs Solutions
The main advantage of trading using opposite Celsius Holdings and Jacobs Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Jacobs Solutions 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 Jacobs Solutions will offset losses from the drop in Jacobs Solutions' long position.| Celsius Holdings vs. Vita Coco | Celsius Holdings vs. Keurig Dr Pepper | Celsius Holdings vs. PepsiCo | Celsius Holdings vs. Coca Cola Femsa SAB |
| Jacobs Solutions vs. Dycom Industries | Jacobs Solutions vs. Innovate Corp | Jacobs Solutions vs. Energy Services | Jacobs Solutions vs. Wang Lee 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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