Correlation Between Celsius Holdings and Onyx Acquisition
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Onyx Acquisition 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 Onyx Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Onyx Acquisition Co, you can compare the effects of market volatilities on Celsius Holdings and Onyx Acquisition 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 Onyx Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Onyx Acquisition.
Diversification Opportunities for Celsius Holdings and Onyx Acquisition
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Celsius and Onyx is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Onyx Acquisition Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Onyx Acquisition 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 Onyx Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Onyx Acquisition has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Onyx Acquisition go up and down completely randomly.
Pair Corralation between Celsius Holdings and Onyx Acquisition
Given the investment horizon of 90 days Celsius Holdings is expected to generate 3.51 times more return on investment than Onyx Acquisition. However, Celsius Holdings is 3.51 times more volatile than Onyx Acquisition Co. It trades about 0.01 of its potential returns per unit of risk. Onyx Acquisition Co is currently generating about 0.01 per unit of risk. If you would invest 3,547 in Celsius Holdings on September 3, 2024 and sell it today you would lose (702.00) from holding Celsius Holdings or give up 19.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.63% |
| Values | Daily Returns |
Celsius Holdings vs. Onyx Acquisition Co
Performance |
| Timeline |
| Celsius Holdings |
| Onyx Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Celsius Holdings and Onyx Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Onyx Acquisition
The main advantage of trading using opposite Celsius Holdings and Onyx Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Onyx Acquisition 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 Onyx Acquisition will offset losses from the drop in Onyx Acquisition'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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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