Correlation Between Celsius Holdings and Tower Semiconductor
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Tower Semiconductor 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 Tower Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Tower Semiconductor, you can compare the effects of market volatilities on Celsius Holdings and Tower Semiconductor 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 Tower Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Tower Semiconductor.
Diversification Opportunities for Celsius Holdings and Tower Semiconductor
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Celsius and Tower is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Tower Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tower Semiconductor 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 Tower Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tower Semiconductor has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Tower Semiconductor go up and down completely randomly.
Pair Corralation between Celsius Holdings and Tower Semiconductor
Given the investment horizon of 90 days Celsius Holdings is expected to under-perform the Tower Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, Celsius Holdings is 1.44 times less risky than Tower Semiconductor. The stock trades about -0.13 of its potential returns per unit of risk. The Tower Semiconductor is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 5,155 in Tower Semiconductor on November 3, 2024 and sell it today you would lose (235.50) from holding Tower Semiconductor or give up 4.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Celsius Holdings vs. Tower Semiconductor
Performance |
| Timeline |
| Celsius Holdings |
| Tower Semiconductor |
Celsius Holdings and Tower Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Tower Semiconductor
The main advantage of trading using opposite Celsius Holdings and Tower Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Tower Semiconductor 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 Tower Semiconductor will offset losses from the drop in Tower Semiconductor'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 |
| Tower Semiconductor vs. Nova | Tower Semiconductor vs. AudioCodes | Tower Semiconductor vs. Nice Ltd ADR | Tower Semiconductor vs. Elbit Systems |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |