Correlation Between Celsius Holdings and Parker Hannifin
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Parker Hannifin 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 Parker Hannifin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Parker Hannifin, you can compare the effects of market volatilities on Celsius Holdings and Parker Hannifin 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 Parker Hannifin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Parker Hannifin.
Diversification Opportunities for Celsius Holdings and Parker Hannifin
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Celsius and Parker is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Parker Hannifin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Parker Hannifin 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 Parker Hannifin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Parker Hannifin has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Parker Hannifin go up and down completely randomly.
Pair Corralation between Celsius Holdings and Parker Hannifin
Given the investment horizon of 90 days Celsius Holdings is expected to under-perform the Parker Hannifin. In addition to that, Celsius Holdings is 1.59 times more volatile than Parker Hannifin. It trades about -0.09 of its total potential returns per unit of risk. Parker Hannifin is currently generating about 0.26 per unit of volatility. If you would invest 62,281 in Parker Hannifin on August 31, 2024 and sell it today you would earn a total of 7,707 from holding Parker Hannifin or generate 12.37% 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. Parker Hannifin
Performance |
| Timeline |
| Celsius Holdings |
| Parker Hannifin |
Celsius Holdings and Parker Hannifin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Parker Hannifin
The main advantage of trading using opposite Celsius Holdings and Parker Hannifin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Parker Hannifin 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 Parker Hannifin will offset losses from the drop in Parker Hannifin'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 |
| Parker Hannifin vs. Standex International | Parker Hannifin vs. Donaldson | Parker Hannifin vs. CSW Industrials | Parker Hannifin vs. Franklin Electric Co |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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