Correlation Between ODDITY Tech and Celsius Holdings
Can any of the company-specific risk be diversified away by investing in both ODDITY Tech 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 ODDITY Tech and Celsius Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ODDITY Tech Ltd and Celsius Holdings, you can compare the effects of market volatilities on ODDITY Tech 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 ODDITY Tech with a short position of Celsius Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of ODDITY Tech and Celsius Holdings.
Diversification Opportunities for ODDITY Tech and Celsius Holdings
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ODDITY and Celsius is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding ODDITY Tech Ltd and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings and ODDITY Tech 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 ODDITY Tech Ltd 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 ODDITY Tech i.e., ODDITY Tech and Celsius Holdings go up and down completely randomly.
Pair Corralation between ODDITY Tech and Celsius Holdings
Considering the 90-day investment horizon ODDITY Tech Ltd is expected to generate 0.81 times more return on investment than Celsius Holdings. However, ODDITY Tech Ltd is 1.23 times less risky than Celsius Holdings. It trades about 0.07 of its potential returns per unit of risk. Celsius Holdings is currently generating about -0.13 per unit of risk. If you would invest 3,976 in ODDITY Tech Ltd on September 12, 2024 and sell it today you would earn a total of 893.00 from holding ODDITY Tech Ltd or generate 22.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
ODDITY Tech Ltd vs. Celsius Holdings
Performance |
| Timeline |
| ODDITY Tech |
| Celsius Holdings |
ODDITY Tech and Celsius Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ODDITY Tech and Celsius Holdings
The main advantage of trading using opposite ODDITY Tech and Celsius Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ODDITY Tech 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.| ODDITY Tech vs. Visteon Corp | ODDITY Tech vs. BorgWarner | ODDITY Tech vs. Rivian Automotive | ODDITY Tech vs. Tesla Inc |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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