Correlation Between Celsius Holdings and Lifeway Foods
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Lifeway Foods 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 Celsius Holdings and Lifeway Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Lifeway Foods, you can compare the effects of market volatilities on Celsius Holdings and Lifeway Foods 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 Celsius Holdings with a short position of Lifeway Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Lifeway Foods.
Diversification Opportunities for Celsius Holdings and Lifeway Foods
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Celsius and Lifeway is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Lifeway Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifeway Foods and Celsius Holdings 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 Celsius Holdings are associated (or correlated) with Lifeway Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lifeway Foods has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Lifeway Foods go up and down completely randomly.
Pair Corralation between Celsius Holdings and Lifeway Foods
Given the investment horizon of 90 days Celsius Holdings is expected to under-perform the Lifeway Foods. But the stock apears to be less risky and, when comparing its historical volatility, Celsius Holdings is 1.51 times less risky than Lifeway Foods. The stock trades about -0.31 of its potential returns per unit of risk. The Lifeway Foods is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,751 in Lifeway Foods on January 25, 2024 and sell it today you would earn a total of 392.00 from holding Lifeway Foods or generate 22.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Celsius Holdings vs. Lifeway Foods
Performance |
Timeline |
Celsius Holdings |
Lifeway Foods |
Celsius Holdings and Lifeway Foods Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Celsius Holdings and Lifeway Foods
The main advantage of trading using opposite Celsius Holdings and Lifeway Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Lifeway Foods 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 Lifeway Foods will offset losses from the drop in Lifeway Foods' long position.Celsius Holdings vs. Vita Coco | Celsius Holdings vs. PepsiCo | Celsius Holdings vs. The Coca Cola | Celsius Holdings vs. Keurig Dr Pepper |
Lifeway Foods vs. Seneca Foods Corp | Lifeway Foods vs. Central Garden Pet | Lifeway Foods vs. Central Garden Pet | Lifeway Foods vs. Lifevantage |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing |