Correlation Between Fluent and Celsius Holdings
Can any of the company-specific risk be diversified away by investing in both Fluent 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 Fluent and Celsius Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fluent Inc and Celsius Holdings, you can compare the effects of market volatilities on Fluent 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 Fluent with a short position of Celsius Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fluent and Celsius Holdings.
Diversification Opportunities for Fluent and Celsius Holdings
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fluent and Celsius is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Fluent Inc and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings and Fluent 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 Fluent Inc 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 Fluent i.e., Fluent and Celsius Holdings go up and down completely randomly.
Pair Corralation between Fluent and Celsius Holdings
Given the investment horizon of 90 days Fluent Inc is expected to under-perform the Celsius Holdings. In addition to that, Fluent is 1.3 times more volatile than Celsius Holdings. It trades about -0.11 of its total potential returns per unit of risk. Celsius Holdings is currently generating about -0.1 per unit of volatility. If you would invest 3,103 in Celsius Holdings on August 30, 2024 and sell it today you would lose (266.00) from holding Celsius Holdings or give up 8.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fluent Inc vs. Celsius Holdings
Performance |
| Timeline |
| Fluent Inc |
| Celsius Holdings |
Fluent and Celsius Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fluent and Celsius Holdings
The main advantage of trading using opposite Fluent and Celsius Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fluent 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.The idea behind Fluent Inc and Celsius Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Celsius Holdings vs. Coca Cola Consolidated | 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |