Correlation Between Celsius Holdings and Thor Industries
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Thor Industries 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 Thor Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Thor Industries, you can compare the effects of market volatilities on Celsius Holdings and Thor Industries 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 Thor Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Thor Industries.
Diversification Opportunities for Celsius Holdings and Thor Industries
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Celsius and Thor is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Thor Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thor Industries 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 Thor Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thor Industries has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Thor Industries go up and down completely randomly.
Pair Corralation between Celsius Holdings and Thor Industries
Given the investment horizon of 90 days Celsius Holdings is expected to under-perform the Thor Industries. In addition to that, Celsius Holdings is 1.6 times more volatile than Thor Industries. It trades about -0.13 of its total potential returns per unit of risk. Thor Industries is currently generating about 0.16 per unit of volatility. If you would invest 10,458 in Thor Industries on September 2, 2024 and sell it today you would earn a total of 702.00 from holding Thor Industries or generate 6.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celsius Holdings vs. Thor Industries
Performance |
| Timeline |
| Celsius Holdings |
| Thor Industries |
Celsius Holdings and Thor Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Thor Industries
The main advantage of trading using opposite Celsius Holdings and Thor Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Thor Industries 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 Thor Industries will offset losses from the drop in Thor Industries' 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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