Correlation Between Celsius Holdings and Willamette Valley
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Willamette Valley 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 Willamette Valley into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Willamette Valley Vineyards, you can compare the effects of market volatilities on Celsius Holdings and Willamette Valley 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 Willamette Valley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Willamette Valley.
Diversification Opportunities for Celsius Holdings and Willamette Valley
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Celsius and Willamette is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Willamette Valley Vineyards in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Willamette Valley 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 Willamette Valley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Willamette Valley has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Willamette Valley go up and down completely randomly.
Pair Corralation between Celsius Holdings and Willamette Valley
Given the investment horizon of 90 days Celsius Holdings is expected to under-perform the Willamette Valley. In addition to that, Celsius Holdings is 1.65 times more volatile than Willamette Valley Vineyards. It trades about -0.05 of its total potential returns per unit of risk. Willamette Valley Vineyards is currently generating about -0.08 per unit of volatility. If you would invest 520.00 in Willamette Valley Vineyards on August 29, 2024 and sell it today you would lose (184.58) from holding Willamette Valley Vineyards or give up 35.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celsius Holdings vs. Willamette Valley Vineyards
Performance |
| Timeline |
| Celsius Holdings |
| Willamette Valley |
Celsius Holdings and Willamette Valley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Willamette Valley
The main advantage of trading using opposite Celsius Holdings and Willamette Valley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Willamette Valley 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 Willamette Valley will offset losses from the drop in Willamette Valley'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 |
| Willamette Valley vs. Andrew Peller Limited | Willamette Valley vs. Naked Wines plc | Willamette Valley vs. Willamette Valley Vineyards | Willamette Valley vs. The Tinley Beverage |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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