Correlation Between Trupanion and Celsius Holdings
Can any of the company-specific risk be diversified away by investing in both Trupanion 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 Trupanion and Celsius Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trupanion and Celsius Holdings, you can compare the effects of market volatilities on Trupanion 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 Trupanion with a short position of Celsius Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trupanion and Celsius Holdings.
Diversification Opportunities for Trupanion and Celsius Holdings
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Trupanion and Celsius is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Trupanion and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings and Trupanion 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 Trupanion 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 Trupanion i.e., Trupanion and Celsius Holdings go up and down completely randomly.
Pair Corralation between Trupanion and Celsius Holdings
Given the investment horizon of 90 days Trupanion is expected to generate 0.68 times more return on investment than Celsius Holdings. However, Trupanion is 1.47 times less risky than Celsius Holdings. It trades about 0.15 of its potential returns per unit of risk. Celsius Holdings is currently generating about -0.11 per unit of risk. If you would invest 5,005 in Trupanion on September 3, 2024 and sell it today you would earn a total of 326.00 from holding Trupanion or generate 6.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trupanion vs. Celsius Holdings
Performance |
| Timeline |
| Trupanion |
| Celsius Holdings |
Trupanion and Celsius Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trupanion and Celsius Holdings
The main advantage of trading using opposite Trupanion and Celsius Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trupanion 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.| Trupanion vs. First American | Trupanion vs. Assurant | Trupanion vs. NMI Holdings | Trupanion vs. MGIC Investment Corp |
| 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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