Correlation Between Kraft Heinz and Celsius Holdings
Can any of the company-specific risk be diversified away by investing in both Kraft Heinz 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 Kraft Heinz and Celsius Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kraft Heinz Co and Celsius Holdings, you can compare the effects of market volatilities on Kraft Heinz 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 Kraft Heinz with a short position of Celsius Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kraft Heinz and Celsius Holdings.
Diversification Opportunities for Kraft Heinz and Celsius Holdings
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kraft and Celsius is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Kraft Heinz Co and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings and Kraft Heinz 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 Kraft Heinz Co 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 Kraft Heinz i.e., Kraft Heinz and Celsius Holdings go up and down completely randomly.
Pair Corralation between Kraft Heinz and Celsius Holdings
Considering the 90-day investment horizon Kraft Heinz Co is expected to generate 0.32 times more return on investment than Celsius Holdings. However, Kraft Heinz Co is 3.11 times less risky than Celsius Holdings. It trades about -0.13 of its potential returns per unit of risk. Celsius Holdings is currently generating about -0.06 per unit of risk. If you would invest 3,304 in Kraft Heinz Co on September 1, 2024 and sell it today you would lose (107.00) from holding Kraft Heinz Co or give up 3.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kraft Heinz Co vs. Celsius Holdings
Performance |
| Timeline |
| Kraft Heinz |
| Celsius Holdings |
Kraft Heinz and Celsius Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kraft Heinz and Celsius Holdings
The main advantage of trading using opposite Kraft Heinz and Celsius Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kraft Heinz 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.| Kraft Heinz vs. General Mills | Kraft Heinz vs. Campbell Soup | Kraft Heinz vs. ConAgra Foods | Kraft Heinz vs. Hormel Foods |
| 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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