Correlation Between Celsius Holdings and Tesla
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Tesla 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 Tesla into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Tesla Inc, you can compare the effects of market volatilities on Celsius Holdings and Tesla 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 Tesla. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Tesla.
Diversification Opportunities for Celsius Holdings and Tesla
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Celsius and Tesla is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Tesla Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tesla Inc 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 Tesla. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tesla Inc has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Tesla go up and down completely randomly.
Pair Corralation between Celsius Holdings and Tesla
Given the investment horizon of 90 days Celsius Holdings is expected to under-perform the Tesla. But the stock apears to be less risky and, when comparing its historical volatility, Celsius Holdings is 1.0 times less risky than Tesla. The stock trades about -0.05 of its potential returns per unit of risk. The Tesla Inc is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 21,927 in Tesla Inc on September 1, 2024 and sell it today you would earn a total of 12,589 from holding Tesla Inc or generate 57.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celsius Holdings vs. Tesla Inc
Performance |
| Timeline |
| Celsius Holdings |
| Tesla Inc |
Celsius Holdings and Tesla Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Tesla
The main advantage of trading using opposite Celsius Holdings and Tesla positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Tesla 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 Tesla will offset losses from the drop in Tesla'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 |
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
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |