Correlation Between Celsius Holdings and US Foods

Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and US 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 US 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 US Foods Holding, you can compare the effects of market volatilities on Celsius Holdings and US 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 US Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and US Foods.

Diversification Opportunities for Celsius Holdings and US Foods

0.55

Correlation Coefficient

Celsius Holdings  US Foods

Very weak diversification

The 3 months correlation between Celsius and USFD is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and US Foods Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Foods Holding 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 US Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Foods Holding has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and US Foods go up and down completely randomly.

Pair Corralation between Celsius Holdings and US Foods

Given the investment horizon of 90 days Celsius Holdings is expected to under-perform the US Foods. In addition to that, Celsius Holdings is 3.66 times more volatile than US Foods Holding. It trades about -0.15 of its total potential returns per unit of risk. US Foods Holding is currently generating about -0.14 per unit of volatility. If you would invest  7,807  in US Foods Holding on August 22, 2025 and sell it today you would lose (802.00) from holding US Foods Holding or give up 10.27% of portfolio value over 90 days.

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

Celsius Holdings  vs.  US Foods Holding

Celsius Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days Celsius Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's essential indicators remain fairly strong which may send shares a bit higher in December 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

US Foods Holding

Risk-Adjusted Performance

Weakest

Over the last 90 days US Foods Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Celsius Holdings and US Foods

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

The idea behind Celsius Holdings and US Foods Holding 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.