Correlation Between Citizens and Celsius Holdings
Can any of the company-specific risk be diversified away by investing in both Citizens and Celsius Holdings 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 Citizens and Celsius Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citizens and Celsius Holdings, you can compare the effects of market volatilities on Citizens and Celsius Holdings 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 Citizens with a short position of Celsius Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens and Celsius Holdings.
Diversification Opportunities for Citizens and Celsius Holdings
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citizens and Celsius is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Citizens and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings and Citizens 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 Citizens are associated (or correlated) with Celsius Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celsius Holdings has no effect on the direction of Citizens i.e., Citizens and Celsius Holdings go up and down completely randomly.
Pair Corralation between Citizens and Celsius Holdings
Considering the 90-day investment horizon Citizens is expected to generate 1.06 times more return on investment than Celsius Holdings. However, Citizens is 1.06 times more volatile than Celsius Holdings. It trades about -0.02 of its potential returns per unit of risk. Celsius Holdings is currently generating about -0.13 per unit of risk. If you would invest 459.00 in Citizens on September 2, 2024 and sell it today you would lose (11.00) from holding Citizens or give up 2.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citizens vs. Celsius Holdings
Performance |
| Timeline |
| Citizens |
| Celsius Holdings |
Citizens and Celsius Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens and Celsius Holdings
The main advantage of trading using opposite Citizens and Celsius Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens position performs unexpectedly, Celsius Holdings 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 Celsius Holdings will offset losses from the drop in Celsius Holdings' long position.| Citizens vs. CNO Financial Group | Citizens vs. Brighthouse Financial | Citizens vs. FG Annuities Life | Citizens vs. Prudential Public Limited |
| 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |