Correlation Between Celsius Holdings and Visteon Corp
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Visteon Corp 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 Visteon Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Visteon Corp, you can compare the effects of market volatilities on Celsius Holdings and Visteon Corp 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 Visteon Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Visteon Corp.
Diversification Opportunities for Celsius Holdings and Visteon Corp
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Celsius and Visteon is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Visteon Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Visteon Corp 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 Visteon Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Visteon Corp has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Visteon Corp go up and down completely randomly.
Pair Corralation between Celsius Holdings and Visteon Corp
Given the investment horizon of 90 days Celsius Holdings is expected to generate 2.3 times more return on investment than Visteon Corp. However, Celsius Holdings is 2.3 times more volatile than Visteon Corp. It trades about 0.03 of its potential returns per unit of risk. Visteon Corp is currently generating about -0.08 per unit of risk. If you would invest 2,701 in Celsius Holdings on October 21, 2024 and sell it today you would earn a total of 22.00 from holding Celsius Holdings or generate 0.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celsius Holdings vs. Visteon Corp
Performance |
| Timeline |
| Celsius Holdings |
| Visteon Corp |
Celsius Holdings and Visteon Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Visteon Corp
The main advantage of trading using opposite Celsius Holdings and Visteon Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Visteon Corp 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 Visteon Corp will offset losses from the drop in Visteon Corp'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 |
| Visteon Corp vs. Gentex | Visteon Corp vs. Adient PLC | Visteon Corp vs. Autoliv | Visteon Corp vs. Fox Factory Holding |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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