Correlation Between Vita Coco and Celsius Holdings
Can any of the company-specific risk be diversified away by investing in both Vita Coco 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 Vita Coco and Celsius Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vita Coco and Celsius Holdings, you can compare the effects of market volatilities on Vita Coco 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 Vita Coco with a short position of Celsius Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vita Coco and Celsius Holdings.
Diversification Opportunities for Vita Coco and Celsius Holdings
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Vita and Celsius is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Vita Coco and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings and Vita Coco 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 Vita Coco 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 Vita Coco i.e., Vita Coco and Celsius Holdings go up and down completely randomly.
Pair Corralation between Vita Coco and Celsius Holdings
Given the investment horizon of 90 days Vita Coco is expected to generate 0.99 times more return on investment than Celsius Holdings. However, Vita Coco is 1.01 times less risky than Celsius Holdings. It trades about 0.33 of its potential returns per unit of risk. Celsius Holdings is currently generating about -0.1 per unit of risk. If you would invest 2,943 in Vita Coco on August 26, 2024 and sell it today you would earn a total of 669.00 from holding Vita Coco or generate 22.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vita Coco vs. Celsius Holdings
Performance |
| Timeline |
| Vita Coco |
| Celsius Holdings |
Vita Coco and Celsius Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vita Coco and Celsius Holdings
The main advantage of trading using opposite Vita Coco and Celsius Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vita Coco 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.| Vita Coco vs. Coca Cola Femsa SAB | Vita Coco vs. Coca Cola European Partners | Vita Coco vs. Embotelladora Andina SA | Vita Coco vs. Monster Beverage Corp |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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