Correlation Between Celsius Holdings and PACCAR
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and PACCAR 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 PACCAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and PACCAR Inc, you can compare the effects of market volatilities on Celsius Holdings and PACCAR 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 PACCAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and PACCAR.
Diversification Opportunities for Celsius Holdings and PACCAR
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Celsius and PACCAR is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and PACCAR Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PACCAR Inc 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 PACCAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PACCAR Inc has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and PACCAR go up and down completely randomly.
Pair Corralation between Celsius Holdings and PACCAR
Given the investment horizon of 90 days Celsius Holdings is expected to under-perform the PACCAR. In addition to that, Celsius Holdings is 2.38 times more volatile than PACCAR Inc. It trades about -0.04 of its total potential returns per unit of risk. PACCAR Inc is currently generating about 0.07 per unit of volatility. If you would invest 9,138 in PACCAR Inc on September 2, 2024 and sell it today you would earn a total of 2,562 from holding PACCAR Inc or generate 28.04% 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. PACCAR Inc
Performance |
| Timeline |
| Celsius Holdings |
| PACCAR Inc |
Celsius Holdings and PACCAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and PACCAR
The main advantage of trading using opposite Celsius Holdings and PACCAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, PACCAR 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 PACCAR will offset losses from the drop in PACCAR'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 |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |