Correlation Between Celsius Holdings and Aeye
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Aeye 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 Aeye into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Aeye Inc, you can compare the effects of market volatilities on Celsius Holdings and Aeye 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 Aeye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Aeye.
Diversification Opportunities for Celsius Holdings and Aeye
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Celsius and Aeye is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Aeye Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeye Inc 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 Aeye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aeye Inc has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Aeye go up and down completely randomly.
Pair Corralation between Celsius Holdings and Aeye
Given the investment horizon of 90 days Celsius Holdings is expected to under-perform the Aeye. But the stock apears to be less risky and, when comparing its historical volatility, Celsius Holdings is 2.82 times less risky than Aeye. The stock trades about -0.02 of its potential returns per unit of risk. The Aeye Inc is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 554.00 in Aeye Inc on August 31, 2024 and sell it today you would lose (441.00) from holding Aeye Inc or give up 79.6% 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. Aeye Inc
Performance |
| Timeline |
| Celsius Holdings |
| Aeye Inc |
Celsius Holdings and Aeye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Aeye
The main advantage of trading using opposite Celsius Holdings and Aeye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Aeye 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 Aeye will offset losses from the drop in Aeye's long position.| Celsius Holdings vs. Vita Coco | Celsius Holdings vs. PepsiCo | Celsius Holdings vs. The Coca Cola | Celsius Holdings vs. Coca Cola Femsa SAB |
| Aeye vs. Innoviz Technologies | Aeye vs. Luminar Technologies | Aeye vs. Hesai Group American | Aeye vs. Mobileye Global Class |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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