Correlation Between Celsius Holdings and Newage
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Newage 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 Newage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Newage Inc, you can compare the effects of market volatilities on Celsius Holdings and Newage 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 Newage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Newage.
Diversification Opportunities for Celsius Holdings and Newage
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Celsius and Newage is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Newage Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newage Inc 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 Newage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newage Inc has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Newage go up and down completely randomly.
Pair Corralation between Celsius Holdings and Newage
If you would invest 0.50 in Newage Inc on January 19, 2024 and sell it today you would earn a total of 0.00 from holding Newage Inc or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 4.55% |
Values | Daily Returns |
Celsius Holdings vs. Newage Inc
Performance |
Timeline |
Celsius Holdings |
Newage Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Celsius Holdings and Newage Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Celsius Holdings and Newage
The main advantage of trading using opposite Celsius Holdings and Newage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Newage 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 Newage will offset losses from the drop in Newage's long position.Celsius Holdings vs. Keurig Dr Pepper | Celsius Holdings vs. Embotelladora Andina SA | Celsius Holdings vs. Embotelladora Andina SA | Celsius Holdings vs. Signet International Holdings |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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