Correlation Between Celsius Holdings and A SPAC

Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and A SPAC 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 A SPAC into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Celsius Holdings and A SPAC III, you can compare the effects of market volatilities on Celsius Holdings and A SPAC 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 A SPAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and A SPAC.

Diversification Opportunities for Celsius Holdings and A SPAC

0.86

Correlation Coefficient

Celsius Holdings  A SPAC

Very poor diversification

The 3 months correlation between Celsius and ASPC is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and A SPAC III in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A SPAC III 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 A SPAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A SPAC III has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and A SPAC go up and down completely randomly.

Pair Corralation between Celsius Holdings and A SPAC

Given the investment horizon of 90 days Celsius Holdings is expected to generate 14.63 times more return on investment than A SPAC. However, Celsius Holdings is 14.63 times more volatile than A SPAC III. It trades about 0.2 of its potential returns per unit of risk. A SPAC III is currently generating about 0.12 per unit of risk. If you would invest  3,389  in Celsius Holdings on May 4, 2025 and sell it today you would earn a total of  1,083  from holding Celsius Holdings or generate 31.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Celsius Holdings  vs.  A SPAC III

Celsius Holdings

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Celsius Holdings are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady essential indicators, Celsius Holdings demonstrated solid returns over the last few months and may actually be approaching a breakup point.

A SPAC III

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in A SPAC III are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, A SPAC is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Celsius Holdings and A SPAC

The main advantage of trading using opposite Celsius Holdings and A SPAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, A SPAC 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 A SPAC will offset losses from the drop in A SPAC's long position.

The idea behind Celsius Holdings and A SPAC III pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.