Correlation Between Celsius Holdings and Salesforce
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings and Salesforce 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 Salesforce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Salesforce, you can compare the effects of market volatilities on Celsius Holdings and Salesforce 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 Salesforce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Salesforce.
Diversification Opportunities for Celsius Holdings and Salesforce
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Celsius and Salesforce is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings and Salesforce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salesforce 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 Salesforce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salesforce has no effect on the direction of Celsius Holdings i.e., Celsius Holdings and Salesforce go up and down completely randomly.
Pair Corralation between Celsius Holdings and Salesforce
Given the investment horizon of 90 days Celsius Holdings is expected to generate 1.46 times more return on investment than Salesforce. However, Celsius Holdings is 1.46 times more volatile than Salesforce. It trades about 0.33 of its potential returns per unit of risk. Salesforce is currently generating about 0.12 per unit of risk. If you would invest 4,009 in Celsius Holdings on April 5, 2025 and sell it today you would earn a total of 628.00 from holding Celsius Holdings or generate 15.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Celsius Holdings vs. Salesforce
Performance |
| Timeline |
| Celsius Holdings |
| Salesforce |
Celsius Holdings and Salesforce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Salesforce
The main advantage of trading using opposite Celsius Holdings and Salesforce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings position performs unexpectedly, Salesforce 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 Salesforce will offset losses from the drop in Salesforce's long position.| Celsius Holdings vs. National Beverage Corp | Celsius Holdings vs. Keurig Dr Pepper | Celsius Holdings vs. Coca Cola Femsa SAB | Celsius Holdings vs. Zevia Pbc |
| Salesforce vs. Precision Drilling | Salesforce vs. Cars Inc | Salesforce vs. Dana Inc | Salesforce vs. Integrated Drilling Equipment |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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