Correlation Between Celsius Holdings and SunOpta
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and SunOpta 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 SunOpta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and SunOpta, you can compare the effects of market volatilities on Celsius Holdings and SunOpta 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 SunOpta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and SunOpta.
Diversification Opportunities for Celsius Holdings and SunOpta
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Celsius and SunOpta is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and SunOpta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunOpta 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 SunOpta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SunOpta has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and SunOpta go up and down completely randomly.
Pair Corralation between Celsius Holdings and SunOpta
Given the investment horizon of 90 days Celsius Holdings is expected to under-perform the SunOpta. In addition to that, Celsius Holdings is 1.06 times more volatile than SunOpta. It trades about -0.09 of its total potential returns per unit of risk. SunOpta is currently generating about 0.42 per unit of volatility. If you would invest 586.00 in SunOpta on August 31, 2024 and sell it today you would earn a total of 195.00 from holding SunOpta or generate 33.28% 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. SunOpta
Performance |
| Timeline |
| Celsius Holdings |
| SunOpta |
Celsius Holdings and SunOpta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and SunOpta
The main advantage of trading using opposite Celsius Holdings and SunOpta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, SunOpta 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 SunOpta will offset losses from the drop in SunOpta's long position.| Celsius Holdings vs. Vita Coco | Celsius Holdings vs. PepsiCo | Celsius Holdings vs. The Coca Cola | 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 CEOs Directory module to screen CEOs from public companies around the world.
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