Correlation Between Celsius Holdings and Sea
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Sea 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 Sea into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Sea, you can compare the effects of market volatilities on Celsius Holdings and Sea 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 Sea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Sea.
Diversification Opportunities for Celsius Holdings and Sea
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Celsius and Sea is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Sea in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sea 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 Sea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sea has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Sea go up and down completely randomly.
Pair Corralation between Celsius Holdings and Sea
Given the investment horizon of 90 days Celsius Holdings is expected to under-perform the Sea. In addition to that, Celsius Holdings is 1.55 times more volatile than Sea. It trades about -0.19 of its total potential returns per unit of risk. Sea is currently generating about 0.18 per unit of volatility. If you would invest 6,935 in Sea on September 1, 2024 and sell it today you would earn a total of 4,445 from holding Sea or generate 64.1% 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. Sea
Performance |
| Timeline |
| Celsius Holdings |
| Sea |
Celsius Holdings and Sea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Sea
The main advantage of trading using opposite Celsius Holdings and Sea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Sea 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 Sea will offset losses from the drop in Sea'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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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