Correlation Between HUHUTECH International and Celsius Holdings
Can any of the company-specific risk be diversified away by investing in both HUHUTECH International 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 HUHUTECH International and Celsius Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HUHUTECH International Group and Celsius Holdings, you can compare the effects of market volatilities on HUHUTECH International 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 HUHUTECH International with a short position of Celsius Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUHUTECH International and Celsius Holdings.
Diversification Opportunities for HUHUTECH International and Celsius Holdings
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUHUTECH and Celsius is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding HUHUTECH International Group and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings and HUHUTECH International 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 HUHUTECH International Group 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 HUHUTECH International i.e., HUHUTECH International and Celsius Holdings go up and down completely randomly.
Pair Corralation between HUHUTECH International and Celsius Holdings
Given the investment horizon of 90 days HUHUTECH International Group is expected to under-perform the Celsius Holdings. In addition to that, HUHUTECH International is 1.05 times more volatile than Celsius Holdings. It trades about -0.23 of its total potential returns per unit of risk. Celsius Holdings is currently generating about -0.16 per unit of volatility. If you would invest 2,768 in Celsius Holdings on October 26, 2024 and sell it today you would lose (264.00) from holding Celsius Holdings or give up 9.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HUHUTECH International Group vs. Celsius Holdings
Performance |
| Timeline |
| HUHUTECH International |
| Celsius Holdings |
HUHUTECH International and Celsius Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUHUTECH International and Celsius Holdings
The main advantage of trading using opposite HUHUTECH International and Celsius Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUHUTECH International 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.| HUHUTECH International vs. Celsius Holdings | HUHUTECH International vs. Constellation Brands Class | HUHUTECH International vs. ScanSource | HUHUTECH International vs. Hunter Creek Mining |
| Celsius Holdings vs. PepsiCo | Celsius Holdings vs. Vita Coco | Celsius Holdings vs. Aquagold International | Celsius Holdings vs. Thrivent High Yield |
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 Stocks Directory module to find actively traded stocks across global markets.
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