Correlation Between Celsius Holdings and Maanshan Iron
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Maanshan Iron 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 Maanshan Iron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Maanshan Iron Steel, you can compare the effects of market volatilities on Celsius Holdings and Maanshan Iron 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 Maanshan Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Maanshan Iron.
Diversification Opportunities for Celsius Holdings and Maanshan Iron
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Celsius and Maanshan is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Maanshan Iron Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maanshan Iron Steel 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 Maanshan Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maanshan Iron Steel has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Maanshan Iron go up and down completely randomly.
Pair Corralation between Celsius Holdings and Maanshan Iron
Given the investment horizon of 90 days Celsius Holdings is expected to under-perform the Maanshan Iron. But the stock apears to be less risky and, when comparing its historical volatility, Celsius Holdings is 1.78 times less risky than Maanshan Iron. The stock trades about -0.19 of its potential returns per unit of risk. The Maanshan Iron Steel is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 14.00 in Maanshan Iron Steel on September 1, 2024 and sell it today you would lose (2.00) from holding Maanshan Iron Steel or give up 14.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celsius Holdings vs. Maanshan Iron Steel
Performance |
| Timeline |
| Celsius Holdings |
| Maanshan Iron Steel |
Celsius Holdings and Maanshan Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Maanshan Iron
The main advantage of trading using opposite Celsius Holdings and Maanshan Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Maanshan Iron 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 Maanshan Iron will offset losses from the drop in Maanshan Iron'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 |
| Maanshan Iron vs. Olympic Steel | Maanshan Iron vs. POSCO Holdings | Maanshan Iron vs. Steel Dynamics | Maanshan Iron vs. Universal Stainless Alloy |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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