Correlation Between Celsius Holdings and Perseus Mining
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Perseus Mining 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 Perseus Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Perseus Mining Limited, you can compare the effects of market volatilities on Celsius Holdings and Perseus Mining 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 Perseus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Perseus Mining.
Diversification Opportunities for Celsius Holdings and Perseus Mining
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Celsius and Perseus is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Perseus Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perseus Mining 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 Perseus Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perseus Mining has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Perseus Mining go up and down completely randomly.
Pair Corralation between Celsius Holdings and Perseus Mining
Given the investment horizon of 90 days Celsius Holdings is expected to under-perform the Perseus Mining. But the stock apears to be less risky and, when comparing its historical volatility, Celsius Holdings is 1.13 times less risky than Perseus Mining. The stock trades about -0.09 of its potential returns per unit of risk. The Perseus Mining Limited is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 182.00 in Perseus Mining Limited on August 31, 2024 and sell it today you would lose (14.00) from holding Perseus Mining Limited or give up 7.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celsius Holdings vs. Perseus Mining Limited
Performance |
| Timeline |
| Celsius Holdings |
| Perseus Mining |
Celsius Holdings and Perseus Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Perseus Mining
The main advantage of trading using opposite Celsius Holdings and Perseus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Perseus Mining 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 Perseus Mining will offset losses from the drop in Perseus Mining'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 |
| Perseus Mining vs. Aurion Resources | Perseus Mining vs. Rio2 Limited | Perseus Mining vs. Palamina Corp | Perseus Mining vs. BTU Metals Corp |
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 Stocks Directory module to find actively traded stocks across global markets.
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