Correlation Between Celsius Holdings and Kraft Heinz
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Kraft Heinz 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 Kraft Heinz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Kraft Heinz Co, you can compare the effects of market volatilities on Celsius Holdings and Kraft Heinz 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 Kraft Heinz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Kraft Heinz.
Diversification Opportunities for Celsius Holdings and Kraft Heinz
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Celsius and Kraft is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Kraft Heinz Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kraft Heinz 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 Kraft Heinz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kraft Heinz has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Kraft Heinz go up and down completely randomly.
Pair Corralation between Celsius Holdings and Kraft Heinz
Given the investment horizon of 90 days Celsius Holdings is expected to generate 4.41 times more return on investment than Kraft Heinz. However, Celsius Holdings is 4.41 times more volatile than Kraft Heinz Co. It trades about 0.17 of its potential returns per unit of risk. Kraft Heinz Co is currently generating about 0.14 per unit of risk. If you would invest 2,538 in Celsius Holdings on November 27, 2024 and sell it today you would earn a total of 599.00 from holding Celsius Holdings or generate 23.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Celsius Holdings vs. Kraft Heinz Co
Performance |
| Timeline |
| Celsius Holdings |
| Kraft Heinz |
Celsius Holdings and Kraft Heinz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Kraft Heinz
The main advantage of trading using opposite Celsius Holdings and Kraft Heinz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Kraft Heinz 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 Kraft Heinz will offset losses from the drop in Kraft Heinz'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 |
| Kraft Heinz vs. General Mills | Kraft Heinz vs. Campbell Soup | Kraft Heinz vs. ConAgra Foods | Kraft Heinz vs. Hormel Foods |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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