Correlation Between Auction and Celsius Network

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Auction and Celsius Network 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 Auction and Celsius Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auction and Celsius Network, you can compare the effects of market volatilities on Auction and Celsius Network 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 Auction with a short position of Celsius Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auction and Celsius Network.

Diversification Opportunities for Auction and Celsius Network

0.94
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Auction and Celsius is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Auction and Celsius Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Network and Auction 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 Auction are associated (or correlated) with Celsius Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celsius Network has no effect on the direction of Auction i.e., Auction and Celsius Network go up and down completely randomly.

Pair Corralation between Auction and Celsius Network

Assuming the 90 days trading horizon Auction is expected to under-perform the Celsius Network. But the crypto coin apears to be less risky and, when comparing its historical volatility, Auction is 3.48 times less risky than Celsius Network. The crypto coin trades about -0.05 of its potential returns per unit of risk. The Celsius Network is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  67.00  in Celsius Network on April 8, 2022 and sell it today you would earn a total of  16.00  from holding Celsius Network or generate 23.88% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Auction  vs.  Celsius Network

 Performance (%) 
      Timeline 
Auction 
Auction Performance
0 of 100
Over the last 90 days Auction has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Crypto's forward indicators remain quite persistent which may send shares a bit higher in August 2022. The latest mess may also be a sign of long-standing up-swing for Auction institutional investors.

Auction Price Channel

Celsius Network 
Celsius Performance
0 of 100
Over the last 90 days Celsius Network has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Crypto's technical and fundamental indicators remain somewhat strong which may send shares a bit higher in August 2022. The current disturbance may also be a sign of long term up-swing for Celsius Network investors.

Celsius Price Channel

Auction and Celsius Network Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Auction and Celsius Network

The main advantage of trading using opposite Auction and Celsius Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auction position performs unexpectedly, Celsius Network 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 Network will offset losses from the drop in Celsius Network's long position.
The idea behind Auction and Celsius Network 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.
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.

Other Complementary Tools

Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Go
Probability Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Go
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go
Bond Directory
Find actively traded corporate debentures issued by US companies
Go
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go