Correlation Between Titan Machinery and Celsius Holdings
Can any of the company-specific risk be diversified away by investing in both Titan Machinery 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 Titan Machinery and Celsius Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Titan Machinery and Celsius Holdings, you can compare the effects of market volatilities on Titan Machinery 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 Titan Machinery with a short position of Celsius Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Titan Machinery and Celsius Holdings.
Diversification Opportunities for Titan Machinery and Celsius Holdings
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Titan and Celsius is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Titan Machinery and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings and Titan Machinery 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 Titan Machinery 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 Titan Machinery i.e., Titan Machinery and Celsius Holdings go up and down completely randomly.
Pair Corralation between Titan Machinery and Celsius Holdings
Given the investment horizon of 90 days Titan Machinery is expected to under-perform the Celsius Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Titan Machinery is 1.37 times less risky than Celsius Holdings. The stock trades about -0.05 of its potential returns per unit of risk. The Celsius Holdings is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 4,700 in Celsius Holdings on August 31, 2024 and sell it today you would lose (1,855) from holding Celsius Holdings or give up 39.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Titan Machinery vs. Celsius Holdings
Performance |
| Timeline |
| Titan Machinery |
| Celsius Holdings |
Titan Machinery and Celsius Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Titan Machinery and Celsius Holdings
The main advantage of trading using opposite Titan Machinery and Celsius Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Titan Machinery 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.| Titan Machinery vs. DXP Enterprises | Titan Machinery vs. Watsco Inc | Titan Machinery vs. Distribution Solutions Group | Titan Machinery vs. SiteOne Landscape Supply |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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