Correlation Between Vestis and Celsius Holdings
Can any of the company-specific risk be diversified away by investing in both Vestis 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 Vestis and Celsius Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vestis and Celsius Holdings, you can compare the effects of market volatilities on Vestis 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 Vestis with a short position of Celsius Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vestis and Celsius Holdings.
Diversification Opportunities for Vestis and Celsius Holdings
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Vestis and Celsius is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Vestis and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings and Vestis 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 Vestis 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 Vestis i.e., Vestis and Celsius Holdings go up and down completely randomly.
Pair Corralation between Vestis and Celsius Holdings
Given the investment horizon of 90 days Vestis is expected to generate 1.06 times more return on investment than Celsius Holdings. However, Vestis is 1.06 times more volatile than Celsius Holdings. It trades about 0.01 of its potential returns per unit of risk. Celsius Holdings is currently generating about 0.0 per unit of risk. If you would invest 1,908 in Vestis on September 3, 2024 and sell it today you would lose (300.00) from holding Vestis or give up 15.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 60.2% |
| Values | Daily Returns |
Vestis vs. Celsius Holdings
Performance |
| Timeline |
| Vestis |
| Celsius Holdings |
Vestis and Celsius Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vestis and Celsius Holdings
The main advantage of trading using opposite Vestis and Celsius Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vestis 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.| Vestis vs. Celsius Holdings | Vestis vs. Eldorado Gold Corp | Vestis vs. Cementos Pacasmayo SAA | Vestis vs. IPG Photonics |
| 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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