Correlation Between Emerson Radio and Celsius Holdings
Can any of the company-specific risk be diversified away by investing in both Emerson Radio 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 Emerson Radio and Celsius Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emerson Radio and Celsius Holdings, you can compare the effects of market volatilities on Emerson Radio 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 Emerson Radio with a short position of Celsius Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerson Radio and Celsius Holdings.
Diversification Opportunities for Emerson Radio and Celsius Holdings
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Emerson and Celsius is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Emerson Radio and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings and Emerson Radio 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 Emerson Radio 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 Emerson Radio i.e., Emerson Radio and Celsius Holdings go up and down completely randomly.
Pair Corralation between Emerson Radio and Celsius Holdings
Considering the 90-day investment horizon Emerson Radio is expected to under-perform the Celsius Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Emerson Radio is 1.45 times less risky than Celsius Holdings. The stock trades about -0.12 of its potential returns per unit of risk. The Celsius Holdings is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 3,136 in Celsius Holdings on August 30, 2024 and sell it today you would lose (299.00) from holding Celsius Holdings or give up 9.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Emerson Radio vs. Celsius Holdings
Performance |
| Timeline |
| Emerson Radio |
| Celsius Holdings |
Emerson Radio and Celsius Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerson Radio and Celsius Holdings
The main advantage of trading using opposite Emerson Radio and Celsius Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerson Radio 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.| Emerson Radio vs. VOXX International | Emerson Radio vs. LG Display Co | Emerson Radio vs. Vizio Holding Corp | Emerson Radio vs. Turtle Beach Corp |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |