Correlation Between Celsius Holdings and Alkaline Water
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Alkaline Water 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 Alkaline Water into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Alkaline Water, you can compare the effects of market volatilities on Celsius Holdings and Alkaline Water 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 Alkaline Water. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Alkaline Water.
Diversification Opportunities for Celsius Holdings and Alkaline Water
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Celsius and Alkaline is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Alkaline Water in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alkaline Water 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 Alkaline Water. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alkaline Water has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Alkaline Water go up and down completely randomly.
Pair Corralation between Celsius Holdings and Alkaline Water
If you would invest 149.00 in Alkaline Water on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Alkaline Water or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Celsius Holdings vs. Alkaline Water
Performance |
| Timeline |
| Celsius Holdings |
| Alkaline Water |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Celsius Holdings and Alkaline Water Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Alkaline Water
The main advantage of trading using opposite Celsius Holdings and Alkaline Water positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Alkaline Water 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 Alkaline Water will offset losses from the drop in Alkaline Water'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 |
| Alkaline Water vs. Zevia Pbc | Alkaline Water vs. Hill Street Beverage | Alkaline Water vs. National Beverage Corp | Alkaline Water vs. Celsius Holdings |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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