Correlation Between 111 and Celsius Holdings

Can any of the company-specific risk be diversified away by investing in both 111 and Celsius Holdings 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 111 and Celsius Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 111 Inc and Celsius Holdings, you can compare the effects of market volatilities on 111 and Celsius Holdings 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 111 with a short position of Celsius Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of 111 and Celsius Holdings.

Diversification Opportunities for 111 and Celsius Holdings

0.35

Correlation Coefficient

111  Celsius Holdings

Weak diversification

The 3 months correlation between 111 and Celsius is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding 111 Inc and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings and 111 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 111 Inc are associated (or correlated) with Celsius Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celsius Holdings has no effect on the direction of 111 i.e., 111 and Celsius Holdings go up and down completely randomly.

Pair Corralation between 111 and Celsius Holdings

Allowing for the 90-day total investment horizon 111 Inc is expected to under-perform the Celsius Holdings. In addition to that, 111 is 1.12 times more volatile than Celsius Holdings. It trades about -0.05 of its total potential returns per unit of risk. Celsius Holdings is currently generating about 0.0 per unit of volatility. If you would invest  3,426  in Celsius Holdings on August 20, 2024 and sell it today you would lose (860.00) from holding Celsius Holdings or give up 25.1% of portfolio value over 90 days.

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

111 Inc  vs.  Celsius Holdings

111 Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days 111 Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite sluggish performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in December 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Celsius Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Celsius Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's essential indicators remain fairly strong which may send shares a bit higher in December 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with 111 and Celsius Holdings

The main advantage of trading using opposite 111 and Celsius Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 111 position performs unexpectedly, Celsius Holdings 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 Celsius Holdings will offset losses from the drop in Celsius Holdings' long position.

The idea behind 111 Inc and Celsius Holdings 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.