Correlation Between Celsius Holdings and SNDL
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and SNDL 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 SNDL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and SNDL Inc, you can compare the effects of market volatilities on Celsius Holdings and SNDL 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 SNDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and SNDL.
Diversification Opportunities for Celsius Holdings and SNDL
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Celsius and SNDL is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and SNDL Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SNDL Inc 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 SNDL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SNDL Inc has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and SNDL go up and down completely randomly.
Pair Corralation between Celsius Holdings and SNDL
Given the investment horizon of 90 days Celsius Holdings is expected to under-perform the SNDL. But the stock apears to be less risky and, when comparing its historical volatility, Celsius Holdings is 1.24 times less risky than SNDL. The stock trades about -0.16 of its potential returns per unit of risk. The SNDL Inc is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 221.00 in SNDL Inc on August 29, 2024 and sell it today you would lose (25.00) from holding SNDL Inc or give up 11.31% 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. SNDL Inc
Performance |
| Timeline |
| Celsius Holdings |
| SNDL Inc |
Celsius Holdings and SNDL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and SNDL
The main advantage of trading using opposite Celsius Holdings and SNDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, SNDL 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 SNDL will offset losses from the drop in SNDL'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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