Correlation Between Celsius Holdings and Simon Property
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Simon Property 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 Simon Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Simon Property Group, you can compare the effects of market volatilities on Celsius Holdings and Simon Property 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 Simon Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Simon Property.
Diversification Opportunities for Celsius Holdings and Simon Property
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Celsius and Simon is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Simon Property Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simon Property Group 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 Simon Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simon Property Group has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Simon Property go up and down completely randomly.
Pair Corralation between Celsius Holdings and Simon Property
Given the investment horizon of 90 days Celsius Holdings is expected to under-perform the Simon Property. In addition to that, Celsius Holdings is 2.76 times more volatile than Simon Property Group. It trades about -0.19 of its total potential returns per unit of risk. Simon Property Group is currently generating about 0.14 per unit of volatility. If you would invest 14,776 in Simon Property Group on September 1, 2024 and sell it today you would earn a total of 3,584 from holding Simon Property Group or generate 24.26% 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. Simon Property Group
Performance |
| Timeline |
| Celsius Holdings |
| Simon Property Group |
Celsius Holdings and Simon Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Simon Property
The main advantage of trading using opposite Celsius Holdings and Simon Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Simon Property 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 Simon Property will offset losses from the drop in Simon Property'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 |
| Simon Property vs. Federal Realty Investment | Simon Property vs. National Retail Properties | Simon Property vs. Kimco Realty |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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