Correlation Between Celsius Holdings and ODDITY Tech
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and ODDITY Tech 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 ODDITY Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and ODDITY Tech Ltd, you can compare the effects of market volatilities on Celsius Holdings and ODDITY Tech 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 ODDITY Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and ODDITY Tech.
Diversification Opportunities for Celsius Holdings and ODDITY Tech
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Celsius and ODDITY is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and ODDITY Tech Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ODDITY Tech 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 ODDITY Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ODDITY Tech has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and ODDITY Tech go up and down completely randomly.
Pair Corralation between Celsius Holdings and ODDITY Tech
Given the investment horizon of 90 days Celsius Holdings is expected to under-perform the ODDITY Tech. In addition to that, Celsius Holdings is 1.17 times more volatile than ODDITY Tech Ltd. It trades about -0.03 of its total potential returns per unit of risk. ODDITY Tech Ltd is currently generating about 0.13 per unit of volatility. If you would invest 3,562 in ODDITY Tech Ltd on September 4, 2024 and sell it today you would earn a total of 923.00 from holding ODDITY Tech Ltd or generate 25.91% 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. ODDITY Tech Ltd
Performance |
| Timeline |
| Celsius Holdings |
| ODDITY Tech |
Celsius Holdings and ODDITY Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and ODDITY Tech
The main advantage of trading using opposite Celsius Holdings and ODDITY Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, ODDITY Tech 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 ODDITY Tech will offset losses from the drop in ODDITY Tech'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 |
| ODDITY Tech vs. Celsius Holdings | ODDITY Tech vs. Esperion Therapeutics | ODDITY Tech vs. The Coca Cola | ODDITY Tech vs. Cardinal Health |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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