Correlation Between Celsius Holdings and Primo Brands

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

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

Diversification Opportunities for Celsius Holdings and Primo Brands

-0.89

Correlation Coefficient

Celsius Holdings  Primo Brands

Pay attention - limited upside

The 3 months correlation between Celsius and Primo is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Primo Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Primo Brands 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 Primo Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Primo Brands has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Primo Brands go up and down completely randomly.

Pair Corralation between Celsius Holdings and Primo Brands

Given the investment horizon of 90 days Celsius Holdings is expected to generate 1.38 times more return on investment than Primo Brands. However, Celsius Holdings is 1.38 times more volatile than Primo Brands. It trades about 0.2 of its potential returns per unit of risk. Primo Brands is currently generating about -0.19 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 Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Celsius Holdings  vs.  Primo Brands

Celsius Holdings

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Celsius Holdings are ranked lower than 16 (%) 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.

Primo Brands

Risk-Adjusted Performance

Very Weak

Over the last 90 days Primo Brands has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's primary indicators remain somewhat strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Celsius Holdings and Primo Brands

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

The idea behind Celsius Holdings and Primo Brands 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 CEOs Directory module to screen CEOs from public companies around the world.