Correlation Between Celsius Holdings and Grupo Simec
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Grupo Simec 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 Grupo Simec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Grupo Simec SAB, you can compare the effects of market volatilities on Celsius Holdings and Grupo Simec 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 Grupo Simec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Grupo Simec.
Diversification Opportunities for Celsius Holdings and Grupo Simec
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Celsius and Grupo is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Grupo Simec SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Simec SAB 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 Grupo Simec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Simec SAB has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Grupo Simec go up and down completely randomly.
Pair Corralation between Celsius Holdings and Grupo Simec
Given the investment horizon of 90 days Celsius Holdings is expected to under-perform the Grupo Simec. In addition to that, Celsius Holdings is 1.36 times more volatile than Grupo Simec SAB. It trades about -0.19 of its total potential returns per unit of risk. Grupo Simec SAB is currently generating about -0.03 per unit of volatility. If you would invest 3,073 in Grupo Simec SAB on September 1, 2024 and sell it today you would lose (384.00) from holding Grupo Simec SAB or give up 12.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 87.3% |
| Values | Daily Returns |
Celsius Holdings vs. Grupo Simec SAB
Performance |
| Timeline |
| Celsius Holdings |
| Grupo Simec SAB |
Celsius Holdings and Grupo Simec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Grupo Simec
The main advantage of trading using opposite Celsius Holdings and Grupo Simec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Grupo Simec 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 Grupo Simec will offset losses from the drop in Grupo Simec'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 |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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