Correlation Between Celsius Holdings and Pineapple Financial
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Pineapple Financial 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 Pineapple Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Pineapple Financial, you can compare the effects of market volatilities on Celsius Holdings and Pineapple Financial 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 Pineapple Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Pineapple Financial.
Diversification Opportunities for Celsius Holdings and Pineapple Financial
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Celsius and Pineapple is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Pineapple Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pineapple Financial 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 Pineapple Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pineapple Financial has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Pineapple Financial go up and down completely randomly.
Pair Corralation between Celsius Holdings and Pineapple Financial
Given the investment horizon of 90 days Celsius Holdings is expected to generate 0.62 times more return on investment than Pineapple Financial. However, Celsius Holdings is 1.62 times less risky than Pineapple Financial. It trades about -0.04 of its potential returns per unit of risk. Pineapple Financial is currently generating about -0.08 per unit of risk. If you would invest 3,136 in Celsius Holdings on August 31, 2024 and sell it today you would lose (299.00) from holding Celsius Holdings or give up 9.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celsius Holdings vs. Pineapple Financial
Performance |
| Timeline |
| Celsius Holdings |
| Pineapple Financial |
Celsius Holdings and Pineapple Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Pineapple Financial
The main advantage of trading using opposite Celsius Holdings and Pineapple Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Pineapple Financial 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 Pineapple Financial will offset losses from the drop in Pineapple Financial's long position.| Celsius Holdings vs. Vita Coco | Celsius Holdings vs. PepsiCo | Celsius Holdings vs. The Coca Cola | Celsius Holdings vs. Coca Cola Femsa SAB |
| Pineapple Financial vs. PACCAR Inc | Pineapple Financial vs. Gentex | Pineapple Financial vs. Modine Manufacturing | Pineapple Financial vs. NH Foods Ltd |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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