Correlation Between Macmahon Holdings and Celsius Holdings
Can any of the company-specific risk be diversified away by investing in both Macmahon Holdings 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 Macmahon Holdings and Celsius Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Macmahon Holdings Limited and Celsius Holdings, you can compare the effects of market volatilities on Macmahon Holdings 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 Macmahon Holdings with a short position of Celsius Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macmahon Holdings and Celsius Holdings.
Diversification Opportunities for Macmahon Holdings and Celsius Holdings
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Macmahon and Celsius is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Macmahon Holdings Limited and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings and Macmahon Holdings 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 Macmahon Holdings Limited 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 Macmahon Holdings i.e., Macmahon Holdings and Celsius Holdings go up and down completely randomly.
Pair Corralation between Macmahon Holdings and Celsius Holdings
If you would invest 22.00 in Macmahon Holdings Limited on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Macmahon Holdings Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Macmahon Holdings Limited vs. Celsius Holdings
Performance |
| Timeline |
| Macmahon Holdings |
| Celsius Holdings |
Macmahon Holdings and Celsius Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macmahon Holdings and Celsius Holdings
The main advantage of trading using opposite Macmahon Holdings and Celsius Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macmahon Holdings 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.| Macmahon Holdings vs. LB Foster | Macmahon Holdings vs. Grocery Outlet Holding | Macmahon Holdings vs. Titan Machinery | Macmahon Holdings vs. Ainsworth Game Technology |
| 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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