Correlation Between Ryman Hospitality and Celsius Holdings
Can any of the company-specific risk be diversified away by investing in both Ryman Hospitality 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 Ryman Hospitality and Celsius Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ryman Hospitality Properties and Celsius Holdings, you can compare the effects of market volatilities on Ryman Hospitality 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 Ryman Hospitality with a short position of Celsius Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ryman Hospitality and Celsius Holdings.
Diversification Opportunities for Ryman Hospitality and Celsius Holdings
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ryman and Celsius is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Ryman Hospitality Properties and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings and Ryman Hospitality 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 Ryman Hospitality Properties 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 Ryman Hospitality i.e., Ryman Hospitality and Celsius Holdings go up and down completely randomly.
Pair Corralation between Ryman Hospitality and Celsius Holdings
Considering the 90-day investment horizon Ryman Hospitality Properties is expected to generate 0.39 times more return on investment than Celsius Holdings. However, Ryman Hospitality Properties is 2.53 times less risky than Celsius Holdings. It trades about 0.06 of its potential returns per unit of risk. Celsius Holdings is currently generating about -0.01 per unit of risk. If you would invest 8,656 in Ryman Hospitality Properties on September 12, 2024 and sell it today you would earn a total of 3,092 from holding Ryman Hospitality Properties or generate 35.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ryman Hospitality Properties vs. Celsius Holdings
Performance |
| Timeline |
| Ryman Hospitality |
| Celsius Holdings |
Ryman Hospitality and Celsius Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ryman Hospitality and Celsius Holdings
The main advantage of trading using opposite Ryman Hospitality and Celsius Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ryman Hospitality 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.| Ryman Hospitality vs. RLJ Lodging Trust | Ryman Hospitality vs. Pebblebrook Hotel Trust | Ryman Hospitality vs. Xenia Hotels Resorts | Ryman Hospitality vs. Sunstone Hotel Investors |
| 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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