Correlation Between Celsius Holdings and ReWalk Robotics
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and ReWalk Robotics 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 ReWalk Robotics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and ReWalk Robotics, you can compare the effects of market volatilities on Celsius Holdings and ReWalk Robotics 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 ReWalk Robotics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and ReWalk Robotics.
Diversification Opportunities for Celsius Holdings and ReWalk Robotics
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Celsius and ReWalk is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and ReWalk Robotics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ReWalk Robotics 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 ReWalk Robotics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ReWalk Robotics has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and ReWalk Robotics go up and down completely randomly.
Pair Corralation between Celsius Holdings and ReWalk Robotics
Given the investment horizon of 90 days Celsius Holdings is expected to generate 0.77 times more return on investment than ReWalk Robotics. However, Celsius Holdings is 1.29 times less risky than ReWalk Robotics. It trades about -0.05 of its potential returns per unit of risk. ReWalk Robotics is currently generating about -0.07 per unit of risk. If you would invest 5,295 in Celsius Holdings on September 20, 2024 and sell it today you would lose (2,586) from holding Celsius Holdings or give up 48.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celsius Holdings vs. ReWalk Robotics
Performance |
| Timeline |
| Celsius Holdings |
| ReWalk Robotics |
Celsius Holdings and ReWalk Robotics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and ReWalk Robotics
The main advantage of trading using opposite Celsius Holdings and ReWalk Robotics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, ReWalk Robotics 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 ReWalk Robotics will offset losses from the drop in ReWalk Robotics' long position.| Celsius Holdings vs. Vita Coco | Celsius Holdings vs. Keurig Dr Pepper | Celsius Holdings vs. PepsiCo | Celsius Holdings vs. Coca Cola Femsa SAB |
| ReWalk Robotics vs. Xponential Fitness | ReWalk Robotics vs. National CineMedia | ReWalk Robotics vs. Reservoir Media | ReWalk Robotics vs. Celsius Holdings |
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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