Correlation Between Celsius Holdings and Natural Alternatives
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Natural Alternatives 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 Natural Alternatives into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Natural Alternatives International, you can compare the effects of market volatilities on Celsius Holdings and Natural Alternatives 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 Natural Alternatives. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Natural Alternatives.
Diversification Opportunities for Celsius Holdings and Natural Alternatives
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Celsius and Natural is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Natural Alternatives Internati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natural Alternatives 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 Natural Alternatives. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natural Alternatives has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Natural Alternatives go up and down completely randomly.
Pair Corralation between Celsius Holdings and Natural Alternatives
Given the investment horizon of 90 days Celsius Holdings is expected to generate 6.24 times more return on investment than Natural Alternatives. However, Celsius Holdings is 6.24 times more volatile than Natural Alternatives International. It trades about 0.17 of its potential returns per unit of risk. Natural Alternatives International is currently generating about -0.24 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celsius Holdings vs. Natural Alternatives Internati
Performance |
| Timeline |
| Celsius Holdings |
| Natural Alternatives |
Celsius Holdings and Natural Alternatives Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Natural Alternatives
The main advantage of trading using opposite Celsius Holdings and Natural Alternatives positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Natural Alternatives 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 Natural Alternatives will offset losses from the drop in Natural Alternatives' long position.| Celsius Holdings vs. Vita Coco | Celsius Holdings vs. Keurig Dr Pepper | Celsius Holdings vs. PepsiCo | Celsius Holdings vs. Coca Cola Femsa SAB |
| Natural Alternatives vs. FitLife Brands, Common | Natural Alternatives vs. Lifeway Foods | Natural Alternatives vs. Else Nutrition Holdings | Natural Alternatives vs. Central Garden Pet |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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