Correlation Between Marfrig Global and Celsius Holdings
Can any of the company-specific risk be diversified away by investing in both Marfrig Global 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 Marfrig Global and Celsius Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marfrig Global Foods and Celsius Holdings, you can compare the effects of market volatilities on Marfrig Global 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 Marfrig Global with a short position of Celsius Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfrig Global and Celsius Holdings.
Diversification Opportunities for Marfrig Global and Celsius Holdings
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Marfrig and Celsius is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Marfrig Global Foods and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings and Marfrig Global 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 Marfrig Global Foods 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 Marfrig Global i.e., Marfrig Global and Celsius Holdings go up and down completely randomly.
Pair Corralation between Marfrig Global and Celsius Holdings
Assuming the 90 days horizon Marfrig Global Foods is expected to generate 1.0 times more return on investment than Celsius Holdings. However, Marfrig Global is 1.0 times more volatile than Celsius Holdings. It trades about 0.23 of its potential returns per unit of risk. Celsius Holdings is currently generating about -0.13 per unit of risk. If you would invest 263.00 in Marfrig Global Foods on September 2, 2024 and sell it today you would earn a total of 42.00 from holding Marfrig Global Foods or generate 15.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marfrig Global Foods vs. Celsius Holdings
Performance |
| Timeline |
| Marfrig Global Foods |
| Celsius Holdings |
Marfrig Global and Celsius Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfrig Global and Celsius Holdings
The main advantage of trading using opposite Marfrig Global and Celsius Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfrig Global 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.| Marfrig Global vs. The A2 Milk | Marfrig Global vs. Artisan Consumer Goods | Marfrig Global vs. General Mills |
| 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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