Correlation Between Cielo Waste and Celestica
Can any of the company-specific risk be diversified away by investing in both Cielo Waste and Celestica 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 Cielo Waste and Celestica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cielo Waste Solutions and Celestica, you can compare the effects of market volatilities on Cielo Waste and Celestica 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 Cielo Waste with a short position of Celestica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cielo Waste and Celestica.
Diversification Opportunities for Cielo Waste and Celestica
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cielo and Celestica is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Cielo Waste Solutions and Celestica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celestica and Cielo Waste 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 Cielo Waste Solutions are associated (or correlated) with Celestica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celestica has no effect on the direction of Cielo Waste i.e., Cielo Waste and Celestica go up and down completely randomly.
Pair Corralation between Cielo Waste and Celestica
Assuming the 90 days horizon Cielo Waste Solutions is expected to under-perform the Celestica. In addition to that, Cielo Waste is 2.51 times more volatile than Celestica. It trades about -0.03 of its total potential returns per unit of risk. Celestica is currently generating about 0.17 per unit of volatility. If you would invest 1,954 in Celestica on September 12, 2024 and sell it today you would earn a total of 10,522 from holding Celestica or generate 538.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cielo Waste Solutions vs. Celestica
Performance |
| Timeline |
| Cielo Waste Solutions |
| Celestica |
Cielo Waste and Celestica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cielo Waste and Celestica
The main advantage of trading using opposite Cielo Waste and Celestica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cielo Waste position performs unexpectedly, Celestica 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 Celestica will offset losses from the drop in Celestica's long position.| Cielo Waste vs. Current Water Technologies | Cielo Waste vs. Plurilock Security | Cielo Waste vs. PowerBand Solutions | Cielo Waste vs. iShares Canadian HYBrid |
| Celestica vs. Descartes Systems Group | Celestica vs. CAE Inc | Celestica vs. CGI Inc | Celestica vs. Cogeco Communications |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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