Correlation Between Celsius Holdings and Pool
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Pool 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 Pool into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Pool Corporation, you can compare the effects of market volatilities on Celsius Holdings and Pool 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 Pool. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Pool.
Diversification Opportunities for Celsius Holdings and Pool
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Celsius and Pool is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Pool Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pool 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 Pool. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pool has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Pool go up and down completely randomly.
Pair Corralation between Celsius Holdings and Pool
Given the investment horizon of 90 days Celsius Holdings is expected to under-perform the Pool. In addition to that, Celsius Holdings is 1.67 times more volatile than Pool Corporation. It trades about -0.1 of its total potential returns per unit of risk. Pool Corporation is currently generating about 0.1 per unit of volatility. If you would invest 36,114 in Pool Corporation on August 30, 2024 and sell it today you would earn a total of 1,569 from holding Pool Corporation or generate 4.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celsius Holdings vs. Pool Corp.
Performance |
| Timeline |
| Celsius Holdings |
| Pool |
Celsius Holdings and Pool Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Pool
The main advantage of trading using opposite Celsius Holdings and Pool positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Pool 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 Pool will offset losses from the drop in Pool'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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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