Correlation Between Celsius Holdings and Constellation Brands
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Constellation Brands 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 Constellation Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Constellation Brands Class, you can compare the effects of market volatilities on Celsius Holdings and Constellation Brands 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 Constellation Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Constellation Brands.
Diversification Opportunities for Celsius Holdings and Constellation Brands
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Celsius and Constellation is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Constellation Brands Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Constellation Brands 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 Constellation Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Constellation Brands has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Constellation Brands go up and down completely randomly.
Pair Corralation between Celsius Holdings and Constellation Brands
Given the investment horizon of 90 days Celsius Holdings is expected to generate 3.09 times more return on investment than Constellation Brands. However, Celsius Holdings is 3.09 times more volatile than Constellation Brands Class. It trades about 0.01 of its potential returns per unit of risk. Constellation Brands Class is currently generating about 0.03 per unit of risk. If you would invest 3,256 in Celsius Holdings on August 31, 2024 and sell it today you would lose (411.00) from holding Celsius Holdings or give up 12.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celsius Holdings vs. Constellation Brands Class
Performance |
| Timeline |
| Celsius Holdings |
| Constellation Brands |
Celsius Holdings and Constellation Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Constellation Brands
The main advantage of trading using opposite Celsius Holdings and Constellation Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Constellation Brands 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 Constellation Brands will offset losses from the drop in Constellation Brands' long position.| Celsius Holdings vs. Vita Coco | Celsius Holdings vs. PepsiCo | Celsius Holdings vs. The Coca Cola | Celsius Holdings vs. Coca Cola Femsa SAB |
| Constellation Brands vs. Brown Forman | Constellation Brands vs. Duckhorn Portfolio | Constellation Brands vs. MGP Ingredients | Constellation Brands vs. Brown Forman |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |