Correlation Between Celsius Holdings and Marfrig Global
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Marfrig Global 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 Marfrig Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Marfrig Global Foods, you can compare the effects of market volatilities on Celsius Holdings and Marfrig Global 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 Marfrig Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Marfrig Global.
Diversification Opportunities for Celsius Holdings and Marfrig Global
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Celsius and Marfrig is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Marfrig Global Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marfrig Global Foods 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 Marfrig Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marfrig Global Foods has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Marfrig Global go up and down completely randomly.
Pair Corralation between Celsius Holdings and Marfrig Global
Given the investment horizon of 90 days Celsius Holdings is expected to under-perform the Marfrig Global. But the stock apears to be less risky and, when comparing its historical volatility, Celsius Holdings is 1.0 times less risky than Marfrig Global. The stock trades about -0.13 of its potential returns per unit of risk. The Marfrig Global Foods is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 263.00 in Marfrig Global Foods on September 2, 2024 and sell it today you would earn a total of 42.00 from holding Marfrig Global Foods or generate 15.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celsius Holdings vs. Marfrig Global Foods
Performance |
| Timeline |
| Celsius Holdings |
| Marfrig Global Foods |
Celsius Holdings and Marfrig Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Marfrig Global
The main advantage of trading using opposite Celsius Holdings and Marfrig Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Marfrig Global 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 Marfrig Global will offset losses from the drop in Marfrig Global'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 |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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