Correlation Between Celsius Holdings and Sealed Air
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Sealed Air 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 Sealed Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Sealed Air, you can compare the effects of market volatilities on Celsius Holdings and Sealed Air 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 Sealed Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Sealed Air.
Diversification Opportunities for Celsius Holdings and Sealed Air
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Celsius and Sealed is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Sealed Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sealed Air 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 Sealed Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sealed Air has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Sealed Air go up and down completely randomly.
Pair Corralation between Celsius Holdings and Sealed Air
Given the investment horizon of 90 days Celsius Holdings is expected to generate 1.77 times more return on investment than Sealed Air. However, Celsius Holdings is 1.77 times more volatile than Sealed Air. It trades about 0.01 of its potential returns per unit of risk. Sealed Air is currently generating about -0.02 per unit of risk. If you would invest 3,712 in Celsius Holdings on August 28, 2024 and sell it today you would lose (737.00) from holding Celsius Holdings or give up 19.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celsius Holdings vs. Sealed Air
Performance |
| Timeline |
| Celsius Holdings |
| Sealed Air |
Celsius Holdings and Sealed Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Sealed Air
The main advantage of trading using opposite Celsius Holdings and Sealed Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Sealed Air 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 Sealed Air will offset losses from the drop in Sealed Air'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 |
| Sealed Air vs. International Paper | Sealed Air vs. Sonoco Products | Sealed Air vs. Reynolds Consumer Products | Sealed Air vs. Ball Corporation |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |