Correlation Between Celsius Holdings and Keurig Dr
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Keurig Dr 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 Keurig Dr into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Keurig Dr Pepper, you can compare the effects of market volatilities on Celsius Holdings and Keurig Dr 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 Keurig Dr. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Keurig Dr.
Diversification Opportunities for Celsius Holdings and Keurig Dr
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Celsius and Keurig is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Keurig Dr Pepper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keurig Dr Pepper 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 Keurig Dr. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keurig Dr Pepper has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Keurig Dr go up and down completely randomly.
Pair Corralation between Celsius Holdings and Keurig Dr
Given the investment horizon of 90 days Celsius Holdings is expected to under-perform the Keurig Dr. In addition to that, Celsius Holdings is 3.43 times more volatile than Keurig Dr Pepper. It trades about -0.13 of its total potential returns per unit of risk. Keurig Dr Pepper is currently generating about 0.06 per unit of volatility. If you would invest 2,933 in Keurig Dr Pepper on August 27, 2024 and sell it today you would earn a total of 333.00 from holding Keurig Dr Pepper or generate 11.35% 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. Keurig Dr Pepper
Performance |
| Timeline |
| Celsius Holdings |
| Keurig Dr Pepper |
Celsius Holdings and Keurig Dr Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Keurig Dr
The main advantage of trading using opposite Celsius Holdings and Keurig Dr positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Keurig Dr 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 Keurig Dr will offset losses from the drop in Keurig Dr'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 |
| Keurig Dr vs. Celsius Holdings | Keurig Dr vs. Vita Coco | Keurig Dr vs. PepsiCo | Keurig Dr vs. Coca Cola Femsa SAB |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Stocks Directory Find actively traded stocks across global markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |