Correlation Between Celsius Holdings and Xponential Fitness
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Xponential Fitness 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 Xponential Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Xponential Fitness, you can compare the effects of market volatilities on Celsius Holdings and Xponential Fitness 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 Xponential Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Xponential Fitness.
Diversification Opportunities for Celsius Holdings and Xponential Fitness
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Celsius and Xponential is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Xponential Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xponential Fitness 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 Xponential Fitness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xponential Fitness has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Xponential Fitness go up and down completely randomly.
Pair Corralation between Celsius Holdings and Xponential Fitness
Given the investment horizon of 90 days Celsius Holdings is expected to generate 1.3 times more return on investment than Xponential Fitness. However, Celsius Holdings is 1.3 times more volatile than Xponential Fitness. It trades about 0.23 of its potential returns per unit of risk. Xponential Fitness is currently generating about -0.1 per unit of risk. If you would invest 2,693 in Celsius Holdings on September 15, 2024 and sell it today you would earn a total of 486.00 from holding Celsius Holdings or generate 18.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celsius Holdings vs. Xponential Fitness
Performance |
| Timeline |
| Celsius Holdings |
| Xponential Fitness |
Celsius Holdings and Xponential Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Xponential Fitness
The main advantage of trading using opposite Celsius Holdings and Xponential Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Xponential Fitness 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 Xponential Fitness will offset losses from the drop in Xponential Fitness' 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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