Correlation Between AERGO and Celsius Network

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

Diversification Opportunities for AERGO and Celsius Network

0.5
  Correlation Coefficient

Very weak diversification

The 3 months correlation between AERGO and Celsius is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding AERGO and Celsius Network in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Celsius Network and AERGO 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 AERGO 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 AERGO i.e., AERGO and Celsius Network go up and down completely randomly.

Pair Corralation between AERGO and Celsius Network

Assuming the 90 days trading horizon AERGO is expected to generate 1.24 times more return on investment than Celsius Network. However, AERGO is 1.24 times more volatile than Celsius Network. It trades about -0.02 of its potential returns per unit of risk. Celsius Network is currently generating about -0.17 per unit of risk. If you would invest  30.00  in AERGO on February 17, 2022 and sell it today you would lose (15.00)  from holding AERGO or give up 50.0% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy98.67%
ValuesDaily Returns

AERGO  vs.  Celsius Network

 Performance (%) 
      Timeline 
AERGO 
AERGO Performance
0 of 100
Over the last 90 days AERGO has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, AERGO is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

AERGO 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 June 2022. The current disturbance may also be a sign of long term up-swing for Celsius Network investors.

Celsius Price Channel

AERGO and Celsius Network Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with AERGO and Celsius Network

The main advantage of trading using opposite AERGO and Celsius Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AERGO 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 AERGO 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

Other Complementary Tools

Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Go
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
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
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Go
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go