Correlation Between Celsius Holdings and NETGEAR
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and NETGEAR 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 NETGEAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and NETGEAR, you can compare the effects of market volatilities on Celsius Holdings and NETGEAR 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 NETGEAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and NETGEAR.
Diversification Opportunities for Celsius Holdings and NETGEAR
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Celsius and NETGEAR is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and NETGEAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NETGEAR 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 NETGEAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NETGEAR has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and NETGEAR go up and down completely randomly.
Pair Corralation between Celsius Holdings and NETGEAR
Given the investment horizon of 90 days Celsius Holdings is expected to under-perform the NETGEAR. But the stock apears to be less risky and, when comparing its historical volatility, Celsius Holdings is 1.16 times less risky than NETGEAR. The stock trades about -0.08 of its potential returns per unit of risk. The NETGEAR is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,621 in NETGEAR on August 28, 2024 and sell it today you would earn a total of 810.00 from holding NETGEAR or generate 49.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celsius Holdings vs. NETGEAR
Performance |
| Timeline |
| Celsius Holdings |
| NETGEAR |
Celsius Holdings and NETGEAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and NETGEAR
The main advantage of trading using opposite Celsius Holdings and NETGEAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, NETGEAR 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 NETGEAR will offset losses from the drop in NETGEAR'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 |
| NETGEAR vs. KVH Industries | NETGEAR vs. Ituran Location and | NETGEAR vs. Aviat Networks | NETGEAR vs. Mynaric AG ADR |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |